USD/ZAR may fall 1269 - 1819 pips

Our pivot point stands at 18.2960.

Our preference

The downside prevails as long as 18.2960 is resistance.

Alternative scenario

Above 18.2960, look for 18.3900 and 18.4450.

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 18.3940 and 18.4190).

Supports and resistances

18.4450 **

18.3900 *

18.2960 **

18.2590

18.2029 last

18.0760

18.0210 **

17.9650 *

17.9100 **

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