Typically a one step forward and two steps back week for the Rand. After going in the week at R14.07/USD, the ZAR went on a power run down to R13.95. So yesterday there was some USD strength and most importantly, the Public Protectors report, with the Rand reaching R14.28 at one stage. It did, however, recover some of its losses to close the week at R14.17. In short - all BRICS currencies still managed to outperform the Euro this week.
#BRICS currency/USD movements for this week:
Brazil +0.8% Russia -0.8% India +0.7% China -0.4% South Africa -0.7%
Euro/USD -1.3%
Technically, the ZAR lost some momentum this week, slicing through both the 200-day (R14.22) moving average at one stage yesterday. The 14-day RSI is still trading somewhat oversold (overbought inversely).
Should the Rand weakness persist during this coming week, the first resistance level to watch remains the 200-day moving average, with a break and close above those levels, most probably looking to test the 50-day MA at R14.44.
Short-term support (also my first target) should still be found at R13.85, with a break & close through those levels, most probably testing the R13.25 levels. Let’s hope we can keep it together politically.