USD/ZAR may fall 1031 - 1451 pips

Our pivot point is at 17.7830.

Our preference

The downside prevails as long as 17.7830 is resistance.

Alternative scenario

The upside breakout of 17.7830, would call for 17.8540 and 17.8960.

Comment

The RSI is trading below 30. This could mean that either the pair is in a lasting downtrend or just oversold and that therefore a rebound could shape (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 17.8800 and 17.9530).

Supports and resistances

17.8960 **

17.8540 *

17.7830 **

17.7550

17.7161 last

17.6130

17.5710 **

17.5290 *

17.4870 **

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