#BRICS currencies movement for the Week – 9 August 2019
Another tough week for Emerging Market Currencies in general. The USD did weaken somewhat, but at no avail for BRICS currencies. South Africa was again hit the hardest, extending the South African Rand’s losses to -5.8% YTD.
#BRICS currency/USD movements for this week:
Brazil -1.3%
Russia 0.0%
India -1.9%
China -1.7%
South Africa -3.1%
Euro/USD +0.8%
Technically, the ZAR broke last week’s “negative” target of R15/USD, ending the week at R15.25. This places the price back into the diagonal parallel channel with 2018’s highs of R15.50 now being main resistance levels.
The ZAR finds itself in extreme overbought (oversold) according to the 14-day RSI .
I do however see the ZAR as being too oversold over the shorter-term and feel that a “dead-cat-bounce” could be imminent.
Should we see an improvement from current levels, support could first be found at the diagonal support line at R15, followed by the 50-day Moving Average at R14.38. A break and close below these levels, could seek support at the 200-day Moving Average at R14.19. a Close below this level, targeting the main support at R13.85 again.
#BRICS currency/USD movements for this week:
Brazil -1.3%
Russia 0.0%
India -1.9%
China -1.7%
South Africa -3.1%
Euro/USD +0.8%
Technically, the ZAR broke last week’s “negative” target of R15/USD, ending the week at R15.25. This places the price back into the diagonal parallel channel with 2018’s highs of R15.50 now being main resistance levels.
The ZAR finds itself in extreme overbought (oversold) according to the 14-day RSI .
I do however see the ZAR as being too oversold over the shorter-term and feel that a “dead-cat-bounce” could be imminent.
Should we see an improvement from current levels, support could first be found at the diagonal support line at R15, followed by the 50-day Moving Average at R14.38. A break and close below these levels, could seek support at the 200-day Moving Average at R14.19. a Close below this level, targeting the main support at R13.85 again.