USDZAR – Sentiment remains Bullish
10th May 2017
At the beginning of April spot USDZAR prices traded positively through the 21 week moving average. This move confirmed a similar bullish crossover in our RSI indicators.
The market was unable to extend that improvement as, after gains of 46 big figures, sentiment was overbought. However, although the subsequent reaction took USDZAR back below the average line RSI did not confirm this and the setback stalled, then attracted, buyers at a weekly Marabuzo line (12.9300).
Renewal of demand for USDZAR followed and the last 2 weeks have seen the spot moving average again exceeded. Our signals remain positive but a move through April’s peak (13.9580) is needed to entrench a bullish bias with Fibonacci recovery points of 14.1485 and 14.5820 then targeted.
