The rand is going up FINALLY! Target R15.92 - With confusion!

OANDA:USDZAR   U.S. Dollar / South African Rand
Rounding Top (Scallop) has formed on the daily chart .
The price has broken below the neckline which signals bearish for USD
Also the moving averages are almost looking good.
21 > 7 >200 - Bearish
First target R15.92
The correlation between the Rand and the JSE stocks have somewhat reversed as of late. When stocks rise, the rand tends to strengthen and vice versa.
Now this makes sense in a way that a stronger rand means more buying power for consumers and more confidence in the economy.
However, we are a HIGH export country where we export in US dollars. As the heavy weightings of the JSE is with resources, we used to fall with a weakening US dollar .
Also, we tend to mirror the S&P500 and the DOw Jones as it's a leading indicator.
So the question we need to ask is... Is America signalling that we are in for massive downside again soon and this has just been a bull trap for us buyers.
OR is this the change in correlation where the JSE will continue up despite what happens in America and the US Dolla.
I Hope the latter.
Things aren't as they always seem.

Trade Well,
Timon Rossolimos
Founder, MATI Trader

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