Analyst thoughts: USD/ZAR Medium-term
VIEW RETAINED FOR A MEDIUM-TERM CONSOLIDATION IN THE PRICE ACTION
The expectation of a R0/S2* medium-term consolidation seems to be materialising.
The test and reversal from S1 has completed the initial phase of the bearish correction. The view remains for ongoing consolidating price action to occur within the highlighted range.
This price action can be contained within the R0/S1 range OR can extend downwards the pivotal S2* level. A number of alternative formations can still develop. The grey illustrated ABC downside is slightly preferred.
If S2* holds then 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* and RA1*
Primary Trend: R0/S2* consolidation, followed by a bull trend to R2 and beyond.
Monthly Range: R0/S1
Current Trend and Target Levels: Downside off R0 towards S1
Technical Rating: Medium