USD/ZAR: Retreating From Overbought; 21-EMA In Focus

Trade FX: USD/ZAR with Unum Capital.

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EDIT/FURTHER UPDATE: The pair continued it's retreat, hitting at a low of R18.81 today. Chart as of 20h26 (South African Time / U.S. Trading Session).

Our view on 20 January was that R18.23 to R18.36 would be a best probability range as support or a buy re-entry range. The level held, traded slightly below, recovered, which was followed by a sharp rally to just below the R20 level. At current levels the rising 8 and 21-day makes the pair retain it's bullish bias but with the ultra short term seeing a pullback (as discussed in the previous note: Monday 07 April). In the ultra short term, a period of consolidation, with support from the 21-day EMA, is likely. Date and time of chart below: Friday 11 April at 12h49 (S/Africa).

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Previous Post (Monday 07 April, 11h32): USD/ZAR: Ultra Short Term Sees Poor Buy/Long Reward-To-Risk

Current price action model reading + updated chart. We saw the share temporarily hold the the R18.23 to R18.36 zone before trading lower, then reclaiming it for a rally to the current multi-week highs nears R19.44.

Lester Davids

Analyst: Unum Capital