RSkeens
Long

USD/ZAR - Staying Long

FX:USDZAR   U.S. Dollar/South African Rand
18 0 0
USD / ZAR             is currently at a pivotal moment concerning the continuation of being range bound since 2011. The outcome can be one of two possibilities:

- A break out to the top side from the existing long term resistance, which would lead to severe depreciation of the South African Rand.
- The long term resistance holds at R12.50 which would likely lead to short term relief to R12.00

It's very important to realise that a dip from here could potentially be one of the few remaining long buying opportunities before the US Federal Reserve raises rates, resulting in further Rand weakness.

Key risks going forward:

- Negative ratings agency views in June by S&P             .
- Leadership turmoil concerning state owned power producer Eskom.
- Potential imminent labour strikes which will reduce already dwindling GDP growth.

I personally see no reason to hold the Rand at any level below R11.90 because the potential upside by the end of the year could be in excess of 10% to 15% should the channel be broken with no fundamentals.
United States
United Kingdom
India
Deutschland
España
France
Italia
Polska
Brasil
Россия
Türkiye
Indonesia
Malaysia
日本
한국
中国
Home Stock Screener Forex Signal Finder Economic Calendar How It Works Chart Features House Rules Moderators Website & Broker Solutions Widgets Stock Charting Library Priority Support Feature Request Blog & News FAQ Help & Wiki Twitter
Profile Profile Settings Account and Billing Priority Support Ideas Published Followers Following Private Messages Chat Sign Out