Analyst thoughts: USD/ZAR Medium-term
VIEW RETAINED: THE TARGET OF 17.42 HAS BEEN SUCCESSFULLY REACHED.
The general view of an A,B,C type correction to S1 has materialiSed and been validated. Recent price action has, however not yet confirmed a medium-term bullish reversal
Bullish price action has not been able decisively breach the pivotal R0* level.
Residual bearish sentiment could result in overlapping PQ-type downside to S1 and even Q*, before a medium-term bottom is established.
The pair is in an interim neutral phase after reaching targets and the illustrated preferred outlook is thus of medium to low conviction.
R0* and Q* are now the important levels. A breach of R0* will activate the 1,2,3,4,5 gains.
S1 is the previous consolidation bottom.
S2* is important where A= C in length is a common technical extension target.
A breach of S2* will extend the downside to S3.
Breaking above R1* will negate the current view.
Target and Re-assessment Levels:
View Negated: R1* and Q*
Primary Trend and Target Levels: PQ downside, followed by gains to R1 and R2
Current Trend and Target Levels: Downside towards S1
Monthly Range: R0*/Q*
Technical Rating: Neutral