The Rand continues to gain against the majors
The below analysis continues to asses how the recent price reversals for the rand against the majors.
The ZAR has continued to strengthen against the majors post election, despite the risk off sentiment induced by thre trade war rhetoric. The below analysis continues to asses how the recent price reversals for the rand against the majors are progressing since our previous note, ‘Rand trading firmer as 2019 election votes are tallied’.
USD/ZAR
The USD/ZAR has traded to a short term low at around R14.15/$.While the longer term trend suggests a sideways consolidation for the USD/ZAR pair, the short term downtrend persists (as highlighted by the dotted white trend line). A close below R14.15/$ calls for a further decline with R13.90/$ the next support target considered. Traders who are short might consider using the dotted trend line as a trailing stop loss consideration.
EUR/ZAR
Similar to The USD/ZAR pair, the EUR/ZAR is also to a short term low, at around R15.85/EUR.While the longer term trend suggests a sideways consolidation for the EUR/ZAR pair, the short term downtrend persists (as highlighted by the dotted red trend line). A close below R15.85/EUR calls for a further decline with R15.65/EUR the next support target considered. Traders who are short might consider using the dotted trend line as a trailing stop loss consideration.
GBP/ZAR
The GBP/ZAR has traded to a short term low at around R18.15/GBP. While the longer term trend suggests a sideways consolidation for the GBP/ZAR pair, the short term downtrend persists. A close below R18.15/GBP calls for a further decline with R17.35/GBP the next support target considered. Traders who are short might consider tailing a stop loss at the two day high.
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