Depreciation of Rand hurting Africa economy
From the beginning of 2020, you can see from the chart that RAND (BRL) currency has depreciated more than 38% against the US dollars.
That makes it even harder for the merchants and business owners in Africa who needs to sell much more than before to make the same US dollars. EZA, the ETF tracking South Africa has also shown a lacklustre performance todate as well.
It's peak at 76 in Jan 2018 will no longer see the sunshine it wanted anymore. It is now trading at 29.84. While there is a support at 24.95, the price action is likely to stay sideway for a while.
I will avoid shorting for now and would not be considering longing EZA until it has broken out of the rectangle.
That makes it even harder for the merchants and business owners in Africa who needs to sell much more than before to make the same US dollars. EZA, the ETF tracking South Africa has also shown a lacklustre performance todate as well.
It's peak at 76 in Jan 2018 will no longer see the sunshine it wanted anymore. It is now trading at 29.84. While there is a support at 24.95, the price action is likely to stay sideway for a while.
I will avoid shorting for now and would not be considering longing EZA until it has broken out of the rectangle.