USD/ZAR may rise 1490 - 2140 pips

18.0360 is our pivot point.

Our preference

The upside prevails as long as 18.0360 is support.

Alternative scenario

The downside breakout of 18.0360 would call for 17.9270 and 17.8620.

Comment

The RSI is above 70. It could mean either that the pair is in a lasting uptrend or just overbought and therefore bound to correct (look for bearish divergence in this case). The MACD is positive and above its signal line. The configuration is positive. Moreover, the price is above its 20 and 50 period moving average (respectively at 18.0490 and 17.9880). Finally, the USD/ZAR is trading above its upper Bollinger band (standing at 18.1419).

Supports and resistances

18.4930 **

18.4280 *

18.3630 **

18.2980

18.1490 last

18.0780

18.0360 **

17.9270 *

17.8620 **

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