$USDZAR might see some short term reprieve

21 Agu 2019

The Rand / Dollar exchange rate has consolidated for a couple of sessions below the previous highs seen last in September 2018. Should the rand bears decide to take further profit, two short term levels to watch out for are 15.00 and 14.60. However, should the rand weaken past the 15.46 closing print from Monday the 19th of August, this should put the rand in a very precarious position with further downside expected. For now, the fact that the previous highs seen in September 2018 have held together with the fact that we are starting to see Divergence develop on the RSI (Higher highs in price - lower highs in RSI), gives me a clue that momentum is waning and we could expect a very short term correction back to my levels indicated. However, the medium/longer term trend on the USDZAR pair is still very much in favor of much higher levels, so i would trade this very short term view with a high degree of caution.