This morning’s analysis focuses on the Rand versus two major currencies, the US Dollar and British Pound.
US Dollar / South African Rand (USDZAR)
Daily Chart View: Month-to-date, the pair has advanced strongly, from a low of 13.22 to the Thursday morning’s level of just above 14.00. The current trading level is just above the mid-point of the sideways sloping channel that has been in place since August 2018 while the price has also temporarily regained it’s 50 and 200-day moving averages. The next resistance levels are 14.13 followed by 14.20 while support is at approximately 13.85 and 13.77.
Weekly Chart View: Following the August 2018 break of the downward trend line going back to December 2015, we saw the price make a strong medium term advance, appreciating from 17.15 to 18.92 (Aug – Sept 2018). Since then the price has retraced, retesting the prior breakout level and over the last two weeks has showed signs of price strength, which suggests that the consolidation phase is nearing an end. The downward trend line going back to September 2018 is currently being breached, with the price back above the 18.00 level early on Thursday. On the upside, 18.56 and 18.85 are targets, while support can be seen at 17.60 and 17.40. The RSI technical indicator, which has also been consolidating, is now also starting to turn higher, suggesting further strength ahead.