Calm and composed ZAR ahead of the local elections.
With the help of stronger commodity prices, the local unit is weathering the volatility storms ahead of the local elections. The rand has been able to keep the USDZAR pair below the critical rate of 18.97 which has allowed the rand to pull the pair below the 200-day MA support of 18.75, despite the broad-based dollar strength.
The pair however remains trapped in the blue wedge but the rand is knocking on the bottom end of the wedge once again. A test on the support rate of 18.54 seems like the next move for the pair but I expect the blue support range between 18.30 and 18.40 to hold its ground before the elections, if the rand manages to catch that break.
A failed break below 18.50 will however see the pair pop back higher to re-test the critical rate of 18.97.
The pair however remains trapped in the blue wedge but the rand is knocking on the bottom end of the wedge once again. A test on the support rate of 18.54 seems like the next move for the pair but I expect the blue support range between 18.30 and 18.40 to hold its ground before the elections, if the rand manages to catch that break.
A failed break below 18.50 will however see the pair pop back higher to re-test the critical rate of 18.97.
Comment:
18.53 has been broken off the back of surging precious metal prices, particularly platinum. Next stop is 18.37