USD/ZAR may fall 1027 - 1447 pips

Our pivot point is at 18.1620.

Our preference

The downside prevails as long as 18.1620 is resistance.

Alternative scenario

Above 18.1620, look for 18.2320 and 18.2730.

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 below its signal line and negative. The configuration is negative. Moreover, the price is trading under both its 20 and 50 period moving average (respectively at 18.1390 and 18.1920).

Supports and resistances

18.2730 **

18.2320 *

18.1620 **

18.1350

18.0997 last

17.9970

17.9550 **

17.9140 *

17.8720 **

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