USD/ZAR - Could a DROP be In Sight Short Term?

This study is for demonstration and educational purposes. We see the possibility that bulls are losing momentum as price reaches the current key zone as noted. Additionally we see formation of possible ascending wedge, which techincals tell us that we could be in for a droop. Price action at current key zone as noted is key. Will price reject attempts to rally past this level? This idea is not for short term as there is a lot of price action that occurs between zones. It could take a while to play out, as price action may consolidate between top two zones before the possibility of dropping further. A very key fundamental is at hand, which is Moody's Credit Rating which is scheduled to be released on March 27, 2020.. If the rand is declared to be junk status all bets are off for shorts and I would expect to see prices surge even possibly to $16 and above.

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Comment:

Great catch last week! 150 pips on the drop. Overall direction I don't think it's over. HOWEVER, this does not mean that we will see some buying before a further drop towards the first key zone, or consolidation between zones before we drop to lower.

Comment:

Look for buying and then another opportunity to sell around the zone as noted, to watch for rejection.