Analyst thoughts: USD/ZAR Medium-term
VIEW RETAINED: MEDIUM-TERM CONSOLIDATION
The expectation of a 1,2,3,4,5 impulsive bull trend to RA1, followed by a W,X,Y correction to S1*, has materialised.
The test and reversal from S1 has completed the initial phase of the bearish correction. The current outlook is for medium-term consolidating price action to occur within the highlighted range.
This price action can be contained within the R0/S1 range OR can extend downwards to the now pivotal S2* level. A number of alternative formations could still develop.
If S2* holds, a very bullish outcome would be for impulsive upside (i ii iii iv v) to new highs.
Target and Re-assessment Levels:
Important Levels: S2*
Primary Trend: R0/S2* consolidation, followed by a bull trend to R2 and beyond.
Monthly Range: R0/S1
Current Trend and Target Levels: Downside towards S1
Technical Rating: Medium