EUR/ZAR may rise 917 - 1357 pips

Our pivot point stands at 20.03.

Our preference

The upside prevails as long as 20.03 is support.

Alternative scenario

The downside breakout of 20.03 would call for 19.95 and 19.91.

Comment

The RSI is above 70. It could mean either that the pair is in a lasting uptrend or just overbought and therefore bound to correct (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 19.96 and 19.91). Finally, the EUR/ZAR is trading above its upper Bollinger band (standing at 20.11).

Supports and resistances

20.40 **

20.35 *

20.31 **

20.27

20.18 last

20.05

20.03 **

19.95 *

19.91 **

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