Another GREAT week for the South African Rand, outperforming most emerging market currencies (against USD), making this now the third week in a row of positive returns.
#BRICS currency/USD movements for this week:
Brazil -0.5%
Russia +2.2%
India +0.9%
China +0.5%
South Africa +1.6%
Euro/USD +0.4%
Technically, the ZAR enjoyed a great week, reaching (and breaking) my last week’s target of R14.63.
The USDZAR still moving out of overbought (oversold) according to the 14-day RSI. Even with the strong movement this week, it however still doesn’t find itself in oversold territory yet. Caution however needed if you’re a big RSI follower.
Should improvement continue from current levels, support could now be found at the 200-day Moving Average at R14.32. a Close below this level, targeting the main support at R13.85 again.
Should we see some profit taking, could see resistance at the 50-day moving average at R14.68. A break and close above these levels will have me monitoring the R15.30 levels with great anticipation. A break above these levels would place us slap-bang back into the diagonal parallel channel.
Go to make the trend my friend this week and call a stronger Rand for a 4th week in a row next week.
#BRICS currency/USD movements for this week:
Brazil -0.5%
Russia +2.2%
India +0.9%
China +0.5%
South Africa +1.6%
Euro/USD +0.4%
Technically, the ZAR enjoyed a great week, reaching (and breaking) my last week’s target of R14.63.
The USDZAR still moving out of overbought (oversold) according to the 14-day RSI. Even with the strong movement this week, it however still doesn’t find itself in oversold territory yet. Caution however needed if you’re a big RSI follower.
Should improvement continue from current levels, support could now be found at the 200-day Moving Average at R14.32. a Close below this level, targeting the main support at R13.85 again.
Should we see some profit taking, could see resistance at the 50-day moving average at R14.68. A break and close above these levels will have me monitoring the R15.30 levels with great anticipation. A break above these levels would place us slap-bang back into the diagonal parallel channel.
Go to make the trend my friend this week and call a stronger Rand for a 4th week in a row next week.