USD/ZAR may fall 1437 - 2047 pips

Our pivot point stands at 18.4020.

Our preference

The downside prevails as long as 18.4020 is resistance.

Alternative scenario

The upside breakout of 18.4020, would call for 18.5050 and 18.5660.

Comment

The RSI is below 30. It could either mean that the pair is in a lasting downtrend or just oversold and therefore bound to retrace (look for bullish divergence in this case). The MACD is negative and below its signal line. The configuration is negative. Moreover, the price is trading under both its 20 and 50 period moving average (respectively at 18.3980 and 18.4220).

Supports and resistances

18.5660 **

18.5050 *

18.4020 **

18.3610

18.3057 last

18.1620

18.1010 **

18.0400 *

17.9780 **

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