USD/ZAR may rise 1177 - 1747 pips

Our pivot point stands at 18.8660.

Our preference

The upside prevails as long as 18.8660 is support.

Alternative scenario

The downside breakout of 18.8660 would call for 18.7710 and 18.7140.

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 18.8800 and 18.7720).

Supports and resistances

19.2460 **

19.1890 *

19.1330 **

19.0760

18.9583 last

18.9030

18.8660 **

18.7710 *

18.7140 **

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