Analyst thoughts: USD/ZAR x-rate
Updated: Jul 25
VIEW RETAINED: MATURING BEAR TREND
The general view of an ABC-type correction to S1 and S2 is in a mature stage of development.
The expected downside off R3 has tested the initial S1 target level. The subsequent upward correction is possibly still part of the larger downside to S2*.
R0* and S2* are now the important levels. A breach of R0* will suggest to a medium-term trend reversal, while trading below S2* will activate an extended downside.
S1 is the previous consolidation bottom.
S2* is important where A= C in length as a common technical extension target.
A breach of S2* will extend downside to S3
Breaking above R1* will negate the current view.
Target and re-assessment levels
View negated: R0* and S2*
Primary trend and targets: Bear trend off R1* to S1 and S2*.
Current trend and targets: R0*/S1 ranging
Monthly range: R1*/ S0
Technical rating: Medium.