The rand has been able to weather the storms of the broad-based stronger dollar thanks to the spike in precious metal prices however the rand did stumble at the back end of last week following the higher-than-expected US CPI print. The critical rates to watch on the USDZAR pair is the 61.8% Fibo rate of 18.97 and the 200-day MA rate of 18.75. I expect the 200-day MA to hold its ground given the renewed geopolitical uncertainties which will see the pair re-test the 18.97 resistance rate. A break above 18.97 will see the rand fold further towards 19.15.
Comment:
The red resistance range has been hit and is being tested. Things could get very ugly for the ZAR if it fails to hold the hair below 19.30