USD/ZAR long-term
Updated
USD/ZAR log scale. The pair broke below two major support rates last week, the 200 week MA and the 0.618 Fib retracement rate. The current target range is between 13.80 and 14.00 with the possibility of a longer-term drop towards 13.18. A break below the black trendline will see the pair slide into the green target range.
Note
The latest SA trade balance for the month of March climbed to an all time high of R52.77 billion! The current commodity cycle will continue to drive the rand stronger. Over the past 10-years average monthly exports from SA have totaled R16.5 billion per month, the average for the past six-months... R26 billion.
As long as China's commodity demand remains stable and the Fed keeps printing, I have no doubt that the pair will drop towards 13.18.
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