Analyst Thoughts - USD/ZAR Medium-term
THE VIEW HAS BEEN MODIFIED TO ACCOUNT FOR A POTENTIAL AND EXPANDING DECLINE.
The general bearish stance from R3 has materialised. The bearish break of the R0 target, suggests further downside potential and the illustrated outlook has been adjusted accordingly.
A larger P, K triangle pattern might be developing. The current A, B, C phase could extend to K, followed by W,X,Y gains to R2.
the RSI is oversold (see the lower panel) and an interim bounce off S0 to R0/R1* will remain part of the A,B,C downside.
R1* is the pivotal mid-point line. A break above this level will indicate that the current downside is complete, activating gains to P.
Target and Re-assessment Levels:
Important Levels: R1*
Primary Trend: Downside to K/S1, followed by gains to P
Monthly Range: R0/S0
Current Trend and Target Levels: Downside to S0
Technical Rating: Medium