SchalkLouw

$USDZAR - Eskom saga continues

FX:USDZAR   U.S. Dollar / South African Rand
This is definitely not good. Eskom announces that there is a high risk of load shedding on Thursday and also demand a 21% electricity price hike (which still need to be approve) and there goes the Rand again. A solid break of the top band of the parallel channel, which now look pretty negative over the short-term, for the Rand bulls. Should we not see an improvement to R14.10 and below, then we can very much go a test the 78.6% Fibonacci retracement resistance at R14.83, with a break through those levels, most probably looking towards the Rand highs of last year September.

The RSI is nearing overbought levels, with a possible turn possibly taking us back to both the 50 and 200 day moving average at R13.89-R13.99.

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