USD/ZAR may fall 996 - 1496 pips

17.8410 is our pivot point.

Our preference

The downside prevails as long as 17.8410 is resistance.

Alternative scenario

Above 17.8410, look for 17.9240 and 17.9740.

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 17.8090 and 17.8820).

Supports and resistances

17.9740 **

17.9240 *

17.8410 **

17.8080

17.7506 last

17.6510

17.6010 **

17.5520 *

17.5020 **

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