USD/ZAR may rise 987 - 1447 pips

Our pivot point stands at 18.6710.

Our preference

The upside prevails as long as 18.6710 is support.

Alternative scenario

The downside breakout of 18.6710 would call for 18.5940 and 18.5470.

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 above its signal line and positive. The configuration is positive. Moreover, the price is above its 20 and 50 period moving average (respectively at 18.6360 and 18.5500). Finally, the USD/ZAR has crossed above its upper Bollinger band (18.7394).

Supports and resistances

18.9900 **

18.9440 *

18.8970 **

18.8510

18.7523 last

18.7020

18.6710 **

18.5940 *

18.5470 **

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