📝Trading Note: USD/ZAR - Bear Trend Nearing Exhaustion

Research Notes 11 - 15 August > https://www.unum.capital/post/r1115august

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USD/ZAR is in a powerful downtrend, with sellers firmly in control. However, the aggressive selling has pushed the pair towards an oversold state, a condition that often precedes a pause or reversal. The primary strategy across all timeframes is to wait for the selling momentum to stabilize. Chasing the trend lower here is risky. A key medium-term scenario to watch for is a potential bullish reversal if the price can reclaim prior session lows, which would be the first sign of stabilization. The trend is down, but the risk/reward of selling has diminished.

Lester Davids

Senior Investment Analyst: Unum Capital