USDZAR Where will the Rand go? The beginning of the end
Buyers entered the market just above R13 to the dollar. This was an area where previous buying also occurred. A high volume low spread candle. Price corrected back to the Yearly PP just above R14/USD. With all the talk of possible US interest rate hikes, downgrade of credit ratings and prosecution of the SA finance minister the market seems to be selling the Rand. The move back to the Yearly PP was not well supported with volume so I am expecting a final quick move down to complete the AB=CD pattern. However, the market has reached the 61% retrace and could only consolidate around the Yearly PP before moving further. If we are going to see a completion of the ABCD pattern the move will probably complete next week. If consolidation around the Yearly PP occurs next week I think the Rand strength is over and we will not see the final move down.
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