The Rand has being consolidating for almost 2 months now in a very strict range of 9.90 and 10.20 however the rectangle
formation (consolidation) has being broken below 9.90 and now we can expect further downside. Measuring the lowest and highest level of the consolidation pattern gives us a projection towards the 9.50 levels.
Adding to my view is the 20 and 50 MA both above the price. We also see negative divergence with MACD
. Fibonacci expects the 0.5 level (9.62437) to be tested. Should this level be broken we could see the golden ratio of 0.618 being reached.
My view remains bearish
with entry below 9.80 looking towards 9.62 and further 9.45