USD/ZAR may fall 1097 - 1597 pips

Our pivot point stands at 17.8620.

Our preference

The downside prevails as long as 17.8620 is resistance.

Alternative scenario

Above 17.8620, look for 17.9450 and 17.9950.

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 17.8760 and 17.9000).

Supports and resistances

17.9950 **

17.9450 *

17.8620 **

17.8290

17.7687 last

17.6590

17.6090 **

17.5600 *

17.5100 **

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