Very interesting level for the USDZAR . It finds itself currently in extreme oversold (overbought if you monitor the ZARUSD ) which could see some interim profit taking soon. This week we saw a break of the very important medium-term resistance-line, which now brings my longer-term target of R13.85 up as possible, “next-stop”. This is also very much in reach with my fair-value model (based on an adjusted PPP model) of R13.39/USD.
The Rand also finds itself below all four the 8-, 21-, 50- and 200-day EMA’s, which are all still pointing downward, which is a good indication that the trend is still looking a lot healthier.
In short – we could see some interim profit-taking, but the trend is very much in the favour of the Rand at this stage, which still has me to believe that the R13.85 target is intact.
The Rand also finds itself below all four the 8-, 21-, 50- and 200-day EMA’s, which are all still pointing downward, which is a good indication that the trend is still looking a lot healthier.
In short – we could see some interim profit-taking, but the trend is very much in the favour of the Rand at this stage, which still has me to believe that the R13.85 target is intact.