USDZAR – Sentiment now Positive
10th April 2017
After seeing a solid and steady decline throughout 2016, and the first quarter of this year, more than 31% high to low, USDZAR sentiment has changed. Last month’s aggressive bounce from the lows extended during the first week of April.
A 2nd up week in a row was posted and, more importantly, both spot prices and the RSI indicator broke above their moving averages. There is scope for a reaction back to the average although further USDZAR upside has already been seen this morning.
So our medium term bias, as shown on our Trend Table, is now bullish. The immediate focus is on the 14.1485 – 14.1765 area (a 50% correction of the May-Mar fall and December’s peak). That would also take USDZAR into the weekly Ichimoku Cloud. The reaction to those levels will be crucial and will be monitored closely.
