USD/ZAR will have a correction this or next week. Heavy resistance at this level and monthly fib at 15.0267. Market psychology took this pair too highe due to political uncertainty and covid. We are familiar with extended trends with respect to covid. ZAR is heavily correlated with metals and bonds, especially lower yields will be bullish for ZAR, higher base metal value will be bullish for ZAR, but not so much as yields. Technical analysis shows strong resistance and DXY may have a correction soon. Which further supports the claim for bearish USD/ZAR to about 300 pips.
Is it possible the rand strength and we see 14 level?
libertasrei
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@abu_ayham, 14.2 is strong support as you can see in the picture. I think we can reach 14.2.
However, the demand for USD/ZAR i strong, as you can see in demand index, we have higher demand than supply. That means, USD/ZAR may actually go higher, but we have resistance on monthly 15.03. 15.03 is the critical test for USD/ZAR. There's weekly resistance at 14.83, which USD/ZAR need to attack first. We will know in the US session. If weekly resistance isn't broken then I'd say it was a fake break out.
We need to know if, the break out from the trend channel, was a real break out or a fake one. There's strong resistance in the red area and then we have the monthly R3. So I think R3 is really the top for this current trend, given the break out was a false break out.
clivepope
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@libertasrei, i agree but it looks totally bullish now !
libertasrei
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@clivepope, I agree. However, I'm slightly in favour of a correction. We have a bullish wedge and a break out, which I surmise is fake. We shall see next week. Big moves are on the cards.
ryanpope1984
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@libertasrei, i guess its going to touch 13.34000 again or even 13.17000
simonnambuli
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@ryanpope1984, so it will drop!! I sell and didn't buy !! Or do i need to close at 00:00 Monday