USDZAR Where will the Rand go? Running ahead of the Gold Bulls
With Gold showing some correction after a bullish move and a strong NFP one would have expected the rand to also have a good sized correction in price. However, the rand has strengthened and supported with some volume returning. The municipal elections have gone down with little incident and with some vote shifts shows that largely the democratic system is in place. This seems to have surprised investors and the rand is running ahead of the Gold Bulls. With the strong NFP and gold's correction in price, I still would expect some correction back to the yearly PP where some structure is indicated. However, the run is set to continue in the next few weeks with a test of the 13Rand/$ level next. The TDI is pointing down and not in over sold region and there is still some room to move. Although the run is going good the Matador sword of a down grade is looming at the end of the run.
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