$ZARUSD - "John Connor, it is time"
This might just be one of my current favorite trades and you're getting it as fresh as it comes. This is the first time since 12 January 2018 where we've seen a Golden Cross on the USD/ZAR (basically the inverse Rand/US$). Previous time this happened, we've seen a nice little run of 6.5% in ZAR.
In
USDZAR
terms, if we see a close at current levels (Golden Cross), my first target will be at 13.66/USD, with a break possibly testing the R13.25 levels again. A break through this level could very much put us back at the R12.80/USD levels. This correspond with my longer term, fair value level.
Should the R14/USD not hold and we see a proper negative break, a test of R14.46 could very much be tested, with a break on this levels, most probably testing the R14.72 levels.
Where's my money currently - I will NOT be betting against the Rand over the short-term.
In
USDZAR
terms, if we see a close at current levels (Golden Cross), my first target will be at 13.66/USD, with a break possibly testing the R13.25 levels again. A break through this level could very much put us back at the R12.80/USD levels. This correspond with my longer term, fair value level. Should the R14/USD not hold and we see a proper negative break, a test of R14.46 could very much be tested, with a break on this levels, most probably testing the R14.72 levels.
Where's my money currently - I will NOT be betting against the Rand over the short-term.
Trade active:
Be careful - critical trendline. A break through the resistance, could see us test weaker Rand levels.