USD/ZAR may rise 1189 - 1649 pips

Our pivot point stands at 18.7850.

Our preference

The upside prevails as long as 18.7850 is support.

Alternative scenario

The downside breakout of 18.7850 would call for 18.7070 and 18.6600.

Comment

The RSI is trading above 70. This could mean that either the pair is in a lasting uptrend or just overbought and that therefore a correction could shape (look for bearish divergence in this case). The MACD is positive and above its signal line. The configuration is positive. Moreover, the price is trading above both its 20 and 50 period moving average (respectively at 18.7630 and 18.6960). Finally, the USD/ZAR has crossed above its upper Bollinger band (18.8650).

Supports and resistances

19.1320 **

19.0850 *

19.0380 **

18.9920

18.8731 last

18.8160

18.7850 **

18.7070 *

18.6600 **

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