Usd/zar has broken and closed above trendline resistance for 2016. Long is the way to be.
Entry point was 14.2500 and the stop is at 14.05. As well as a technical break out my thinking is that the finance minister won't survive and we don't have a credible replacement. It is also my considered opinion that SA should have been downgraded to Junk a long time ago plus they won't intervene to defent the zar ..........its indefensible.
Target is considerably higher and due to the explosive nature of the zar have the t/p loaded up ...............
I am selling some out at 14.70 ( probably 30 % ) to make this almost a free trade. Waypoints are 15.6500, 15.9800 and then 17.75...........if this descends into a farce and given what happened last time its almost a certainty then we could see 20.00
Entry point was 14.2500 and the stop is at 14.05. As well as a technical break out my thinking is that the finance minister won't survive and we don't have a credible replacement. It is also my considered opinion that SA should have been downgraded to Junk a long time ago plus they won't intervene to defent the zar ..........its indefensible.
Target is considerably higher and due to the explosive nature of the zar have the t/p loaded up ...............
I am selling some out at 14.70 ( probably 30 % ) to make this almost a free trade. Waypoints are 15.6500, 15.9800 and then 17.75...........if this descends into a farce and given what happened last time its almost a certainty then we could see 20.00
Comment:
$/zar ..............2% in 2 seconds on SA prosecutor saying he may re-consider finance minister prosecution. Still in the position but by skin of teeth. From 14.4000 to 14.06 and at 14.1700 as I type. Reconsideration is now in the price, stop lowered to 14.0000 just to be one spread away from the low which could be as wide as 500 points in this.