The USD/ZAR pair revisits the 14.5044 December low below which meander moving averages at 14.4264/3563, Axel Rudolph, Senior FICC Technical Analyst at Commerzbank, reports.
Key quotes
“USD/ZAR has been trading in a tight range above its 14.5044 December trough over the past few weeks. Between this level and the 200-week and 55-month moving averages at 14.4264/3563, we expect the cross to at least short-term stabilise.”
“Were a drop below the 55-month moving average at 14.3563 to occur, however, April 2017 high and January 2020 low at 13.9579/9323 would be targeted. We expect this to happen over the coming weeks but not straight away.”
“Minor resistance sits between the 14.8799 December 9 low and the 14.9119 December 21 high and more resistance at the 15.4966/7362 November 12 and 30 highs. Strong resistance comes in between the June and October lows at 16.0838/3613.”
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