Analyst Thoughts - USD/ZAR Medium-term
VIEW RETAINED FOR A TRIANGLE PATTERN THAT IS BUSY DEVELOPING BETWEEN 17.94 AND 19.55.
The general bearish stance from P has materialised, as part of a potential PQ triangle pattern.
The QN-defined downward correction is potentially phase C of the A,B,C,D,E triangle pattern.
The current downside has moderate further downside potential to K*/N cluster support. This should complete phase C and activate D gains towards P.
The triangle continuation pattern in the eventual re–emergence of the long-term bull trend to T1.
A breach of K* will negate the overall view. R1* is the triangle mid-point line.
Target and Re-assessment Levels:
Important Levels: R1* and K*
Primary Trend: Gains off K to P
Monthly Range: R1*/K*
Current Trend and Target Levels: Downside to S1/K*
Technical Rating: Medium