EUR/ZAR may fall 1646 - 2236 pips

Our pivot point stands at 19.57.

Our preference

The downside prevails as long as 19.57 is resistance.

Alternative scenario

The upside breakout of 19.57, would call for 19.67 and 19.73.

Comment

The RSI is trading below 30. This could mean that either the pair is in a lasting downtrend or just oversold and that therefore a rebound could shape (look for bullish divergence in this case). The MACD is below its signal line and negative. The configuration is negative. Moreover, the price is trading under both its 20 and 50 period moving average (respectively at 19.71 and 19.71). Finally, the EUR/ZAR has penetrated its lower Bollinger band (19.49).

Supports and resistances

19.73 **

19.67 *

19.57 **

19.53

19.45 last

19.29

19.23 **

19.17 *

19.11 **

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