USD/ZAR may fall 915 - 1295 pips

Our pivot point stands at 17.6110.

Our preference

The downside prevails as long as 17.6110 is resistance.

Alternative scenario

Above 17.6110, look for 17.6740 and 17.7120.

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 below its signal line and negative. The configuration is negative. Moreover, the price stands below its 20 and 50 period moving average (respectively at 17.6120 and 17.6300). Finally, the USD/ZAR has penetrated its lower Bollinger band (17.5594).

Supports and resistances

17.7120 **

17.6740 *

17.6110 **

17.5860

17.5555 last

17.4640

17.4260 **

17.3890 *

17.3510 **

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