USD/ZAR may fall 995 - 1415 pips

17.7600 is our pivot point.

Our preference

The downside prevails as long as 17.7600 is resistance.

Alternative scenario

The upside breakout of 17.7600, would call for 17.8310 and 17.8730.

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 17.8080 and 17.9130).

Supports and resistances

17.8730 **

17.8310 *

17.7600 **

17.7320

17.7005 last

17.6010

17.5590 **

17.5170 *

17.4750 **

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