Reversal on the cards
The rand has performed solidly since the start of the year mostly due to Powell's less hawkish stance in his testimony earlier this week and more liquidity entering the market. Yesterday's US CPI print for the month of December, which came in at 0.5% m-o-m down from 0.8% in November, saw the DXY drop 0.62% which allowed the rand to pull the pair below the support rate of 15.50.
The next rate of support is the 100-day MA which coincides with the 38.2% Fibo retracement rate at 15.24. I expect this support rate to hold as the stochastic indicator on the pair is trading deep in the oversold zone and the RSI is also nearing its oversold zone. (Both these indicators are deep in the oversold zone on the 4h timeframe)
I'm looking at a short-term'ish buy opportunity around 15.24 with TP zone between 15.66 and the 50-day MA at 15.72. A break above this zone could allow the pair to test the major resistance at 16.10.
The next rate of support is the 100-day MA which coincides with the 38.2% Fibo retracement rate at 15.24. I expect this support rate to hold as the stochastic indicator on the pair is trading deep in the oversold zone and the RSI is also nearing its oversold zone. (Both these indicators are deep in the oversold zone on the 4h timeframe)
I'm looking at a short-term'ish buy opportunity around 15.24 with TP zone between 15.66 and the 50-day MA at 15.72. A break above this zone could allow the pair to test the major resistance at 16.10.
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