USD/ZAR may rise 1517 - 2217 pips

18.3850 is our pivot point.

Our preference

The upside prevails as long as 18.3850 is support.

Alternative scenario

Below 18.3850, expect 18.2690 and 18.2000.

Comment

The RSI is trading above 70. This could mean that either the pair is in a lasting uptrend or just overbought and that therefore a correction could shape (look for bearish divergence in this case). The MACD is above its signal line and positive. The configuration is positive. Moreover, the price is above its 20 and 50 period moving average (respectively at 18.4070 and 18.3620).

Supports and resistances

18.8560 **

18.7870 *

18.7180 **

18.6480

18.4963 last

18.4310

18.3850 **

18.2690 *

18.2000 **

Number of asterisks represents the strength of support and resistance levels.