USD/ZAR may rise 942 - 1402 pips

Our pivot point is at 18.5840.

Our preference

The upside prevails as long as 18.5840 is support.

Alternative scenario

Below 18.5840, expect 18.5070 and 18.4610.

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 positive and above its signal line. The configuration is positive. Moreover, the price is above its 20 and 50 period moving average (respectively at 18.5010 and 18.4150). Finally, the USD/ZAR is trading above its upper Bollinger band (standing at 18.6543).

Supports and resistances

18.9000 **

18.8530 *

18.8070 **

18.7610

18.6668 last

18.6150

18.5840 **

18.5070 *

18.4610 **

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