EUR/ZAR may fall 1275 - 1825 pips

19.77 is our pivot point.

Our preference

The downside prevails as long as 19.77 is resistance.

Alternative scenario

The upside breakout of 19.77, would call for 19.87 and 19.92.

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 19.78 and 19.81). Finally, the EUR/ZAR has penetrated its lower Bollinger band (19.71).

Supports and resistances

19.92 **

19.87 *

19.77 **

19.74

19.67 last

19.55

19.49 **

19.44 *

19.38 **

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