The rand enjoyed some profit-taking at R15.30 this week. Trade optimism between USA and China spurred DXY weakness in the market for the last trading day of the week.
Currently, the rand is enjoying the ride breaking below the key R.15.00 level reversing upward momentum and moving into extreme oversold conditions on the lower time frame graphs (1h-4h) and bouncing off support at R14.70 late in the session(which also happens to be the 100-day simple moving average on the 1d graph)
In my opinion, we will see a bounce at current levels before possibly continuing the downtrend based on current fundamentals and sentiment. On the 4h graph, it should be noted that the rand ended the week on a hammer candlestick pattern preceded by a 3 dive pattern. (bullish reversal pattern).
It should also be noted that there is a slight divergence playing out on the 30min graph, with stochastic, RSI & MACD pointing towards a bounce upwards.
Warning: CFDs are complex financial products traded on margin. Trading CFDs is risky and may not be suitable for all investors. Ensure you understand the risks involved as you may lose all your invested capital
Currently, the rand is enjoying the ride breaking below the key R.15.00 level reversing upward momentum and moving into extreme oversold conditions on the lower time frame graphs (1h-4h) and bouncing off support at R14.70 late in the session(which also happens to be the 100-day simple moving average on the 1d graph)
In my opinion, we will see a bounce at current levels before possibly continuing the downtrend based on current fundamentals and sentiment. On the 4h graph, it should be noted that the rand ended the week on a hammer candlestick pattern preceded by a 3 dive pattern. (bullish reversal pattern).
It should also be noted that there is a slight divergence playing out on the 30min graph, with stochastic, RSI & MACD pointing towards a bounce upwards.
Warning: CFDs are complex financial products traded on margin. Trading CFDs is risky and may not be suitable for all investors. Ensure you understand the risks involved as you may lose all your invested capital