USD/ZAR may fall 1405 - 2055 pips

18.2200 is our pivot point.

Our preference

The downside prevails as long as 18.2200 is resistance.

Alternative scenario

The upside breakout of 18.2200, would call for 18.3290 and 18.3940.

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 18.2180 and 18.2370). Finally, the USD/ZAR has penetrated its lower Bollinger band (18.1093).

Supports and resistances

18.3940 **

18.3290 *

18.2200 **

18.1770

18.1025 last

17.9620

17.8970 **

17.8320 *

17.7680 **

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