USD/ZAR may rise 794 - 1164 pips

17.5050 is our pivot point.

Our preference

The upside prevails as long as 17.5050 is support.

Alternative scenario

The downside breakout of 17.5050 would call for 17.4420 and 17.4050.

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 trading above both its 20 and 50 period moving average (respectively at 17.4810 and 17.4270). Finally, the USD/ZAR has crossed above its upper Bollinger band (17.5655).

Supports and resistances

17.7710 **

17.7340 *

17.6960 **

17.6590

17.5796 last

17.5300

17.5050 **

17.4420 *

17.4050 **

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