We have seen USDZAR test R16.50 in last week as well as on two previous occasions in this longer term downtrend that we find ourself in. Will we see R16.50 being tested again and then bounce weaker from there again? In our minds this is certainly the case that we expect. With all the USD weakness that is going on and being stretched currently we do feel that the USD will probably try to gain some of its lost ground before perhaps weakening again. The EURUSD is struggling to break through the 1.1450 level and the US equities valuations also feels stretched, that could cause some volatility. Looking at the USDZAR graph once again, we can see from the bottom part that the momentum is also bottoming and starting to point to some weakness. We perhaps can see the USDZAR test back to towards the R17.00 level, in this broader R16.50 to R17.50 range we find ourself in for the past 2 months.