#BRICS currencies movement for the week – 27 September 2019
Another week of USD strength, saw another week of BRICS currency weaknesses (with exception of India). Even the Euro lost close to 1% of its value. To top it all, Trump administration officials ended off the week yesterday with an announcement that they are discussing ways to limit US investors' portfolio flows into China. I, therefore, can't see next week starting any better.
#BRICS currency/USD movements for this week:
Brazil -0.3%
Russia -1.0%
India +0.8%
China -0.4%
South Africa -1.5%
Euro/USD -0.7%
Technically, the USDZAR broke the R15/USD level, which psychologically, can't be good over the shorter term. We can also clearly see that the momentum has moved against the Rand, which might be worrying to all trend followers who's long the ZAR.
The USDZAR moving closer to overbought (oversold according to ZARUSD ) according to the 14-day RSI . I'll be monitoring this indicator closely as it reaped some success lately.
Should we return to an improving ZAR from current levels and broke below the R15/USD levels again, support could first be found at the 50-day Moving Average (at R14.87) followed by at the 200-day Moving Average at R14.35. A Close below this level, targeting the primary support at R13.85 again.
Should the ZAR continue its weakness, it will have me monitoring the R15.40 levels with great anticipation. A break above these levels would place us slap-bang back into the diagonal parallel channel .
#BRICS currency/USD movements for this week:
Brazil -0.3%
Russia -1.0%
India +0.8%
China -0.4%
South Africa -1.5%
Euro/USD -0.7%
Technically, the USDZAR broke the R15/USD level, which psychologically, can't be good over the shorter term. We can also clearly see that the momentum has moved against the Rand, which might be worrying to all trend followers who's long the ZAR.
The USDZAR moving closer to overbought (oversold according to ZARUSD ) according to the 14-day RSI . I'll be monitoring this indicator closely as it reaped some success lately.
Should we return to an improving ZAR from current levels and broke below the R15/USD levels again, support could first be found at the 50-day Moving Average (at R14.87) followed by at the 200-day Moving Average at R14.35. A Close below this level, targeting the primary support at R13.85 again.
Should the ZAR continue its weakness, it will have me monitoring the R15.40 levels with great anticipation. A break above these levels would place us slap-bang back into the diagonal parallel channel .