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Writer's picturePeet Serfontein

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


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