Analyst Thoughts - USD/ZAR Medium-term
THE VIEW IS RETAINED FOR A TRIANGLE PATTERN WITH PRICE OSCILLATIONS BETWEEN 17.95 AND 19.55.
The general bearish stance from P has materialised, as part of a potential PQ triangle pattern.
The expected downside off P could have completed a QN correction to the S1/K target support.
The pair is currently testing the R1* and Q resistance. A R1*/S0 consolidation phase is the interim preferred alternative.
An eventual break above R1* will activate further phase D upside to R2 and P, as illustrated.
Feasible alternative: Sharp downside off R1*/Q could result in another NQ-defined bearish leg to K.
Target and Re-assessment Levels:
Important Levels: R1*
Primary Trend: Gains to P, followed by a final bearish leg to K
Monthly Range: R1*/S0
Current Trend and Target Levels: R1*/S0 consolidation
Technical Rating: Medium