USD/ZAR may fall 1005 - 1435 pips

Our pivot point is at 17.8120.

Our preference

The downside prevails as long as 17.8120 is resistance.

Alternative scenario

The upside breakout of 17.8120, would call for 17.8850 and 17.9290.

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 below its signal line and negative. The configuration is negative. Moreover, the price stands below its 20 and 50 period moving average (respectively at 17.7960 and 17.7970). Finally, the USD/ZAR is trading below its lower Bollinger band (standing at 17.7457).

Supports and resistances

17.9290 **

17.8850 *

17.8120 **

17.7840

17.7335 last

17.6330

17.5900 **

17.5470 *

17.5040 **

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