More of the same for the Rand this week, still losing some ground against the USD. This week however mostly because of USD strength and not due to Rand weakness. Also, very much in line with most BRIC currencies.
BRICS currency/USD movements for this week:
Brazil -6.3%
Russia -0.7%
India +0.4%
China -0.1%
South Africa -1.2%
Euro /USD -0.5%
Technically, the ZAR is still trading above all four the 8-, 21-, 50 and 200day Moving Averages ( EMA ) and getting ever the closer to the parallel channel . Should we see it move back into the channel, next stop could very much be the testing of R20/USD.
The 14-day RSI still finds itself in EXTREME OVERBOUGHT (oversold from a ZAR perspective) environment. We can clearly see that the recent Momentum in the USDZAR , is also subsiding, which could see the ZAR improving over the short-term.
Should we however see a break and close below the 21-day EMA (R18.38/USD), could bring the 50-day EMA (R17.36) back into play, with a break and close below this level, most probably looking to test the very important R15.50 support level again.
BRICS currency/USD movements for this week:
Brazil -6.3%
Russia -0.7%
India +0.4%
China -0.1%
South Africa -1.2%
Euro /USD -0.5%
Technically, the ZAR is still trading above all four the 8-, 21-, 50 and 200day Moving Averages ( EMA ) and getting ever the closer to the parallel channel . Should we see it move back into the channel, next stop could very much be the testing of R20/USD.
The 14-day RSI still finds itself in EXTREME OVERBOUGHT (oversold from a ZAR perspective) environment. We can clearly see that the recent Momentum in the USDZAR , is also subsiding, which could see the ZAR improving over the short-term.
Should we however see a break and close below the 21-day EMA (R18.38/USD), could bring the 50-day EMA (R17.36) back into play, with a break and close below this level, most probably looking to test the very important R15.50 support level again.