#BRICS currencies movement for the Week - 26Apr19

105
Tough week for the $ZAR! Yes, there was some USD strength, but in general, more ZAR weakness.

#BRICS currency/USD movements for this week:

Brazil 0.0%
Russia -1.1%
India -0.6%
China -0.4%
South Africa -2.3%

Euro/USD -0.9%

Technically, the USDZAR developed a nice little parallel channel. The cross we saw in the moving averages was also reversed on 12 April, into a Golden Cross (not good if you’re a Rand bull). We did see a bit of recovery in the latter part of this week and should this continue into next week, levels to watch would firstly be the 50-day (R14.20) and then the 200-day (R14.16) moving averages as possible resistance/support levels. A break and close through these levels could see strong support at R14.12, with a breakthrough most probably looking to test mid-April’s R13.85 levels again.

We are however getting mighty close to the South African Elections (8 May 2018), which could see the Rand in some turbulence. Should the ZAR continue its weakness, end of February’s levels of R14.60 seems likely, with the top of the channel at R15 looking to be an extremely strong resistance point. Let’s hope we don’t get there, because if it does, we could most probably see us test September last years (2018) R15.50 levels again.

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