Analyst thoughts: USD/ZAR Medium-term
VIEW RETAINED FOR A MEDIUM-TERM CONSOLIDATION THAT IS PART OF THE BULL TREND TO 20.30
The recent price action has established the consolidation parameters as R1* and S1*. The X phase has extended beyond S0 to the R1* tops.
The test and reversal off S1* to R1* has completed phase X. The interim view remains for consolidating and downward price towards S1 to complete the final phase Y.
If S1* holds during any downside then an eventual bullish outcome would be for impulsive upside (i, ii, iii, iv, v) to at least new highs, as illustrated.
Alternative: With the more significant trend bullish, a definite breach of R1* will activate the indicated upside.
R1* and S1* are the important levels.
Target and Re-assessment Levels:
Important Levels: R1* and S1*
Primary Trend: R1*/S1* consolidation, followed by a bull trend to T1
Monthly Range: R1*/S1*
Current Trend and Target Levels: Downside off R1* to S1*
Technical Rating: Medium