USD/ZAR choose your bets - Up or Down? Sadly I say up to R20 :( USD/ZAR has remained in a symmetrical triangle since January 2023.
This is a consolidation period of neither winning between the buyers and the sellers.
But we are now approaching the apex 3/4s. And a breakout is imminent.
NOw if we look at the pattern, it has a bullish flag pole which is favourable for the bulls to take the USD up to R20.00 against the ZAR.
I hope we broken down below the support which will take it to R16.00. And I hope I am wrong that it will be going to R20,00.
But unfortunately, I can't be biased and it looks like the next target above the resistance will be R20.00.
Southafricanrand
USDZAR Excellent sell signalThe USDZAR pair gave a solid sell signal last time (August 16, see chart below) we made made a call on it, easily hitting the 17.500 Target:
Yet again, the price got rejected near the top (Lower Highs trend-line) of the 8-month Channel Down. A candle closing below the 1D MA50 (blue trend-line) will confirm the sell signal. If successful, we will short and target Support 1 at 17.03500.
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EURO showing strong downside against ZAR to R17.85M Formation has formed over the last few months with the EUR/ZAR.
The price broke below the support which has become the resistance. ANd the price has been coming down on a trajectory to the psychological level of R19.00.
Now, if it breaks down further, I might be too optimistic but it looks like the next target could hit is R17.85.
What are your thoughts?
USDZAR Channel Down intact. More selling to come.The USDZAR pair has been trading within a Channel Down pattern since April and currently is more than half-way through its latest Bearish Leg. Technically it resembles the Bearish Leg of May, which completed a -7.00% decline in the pricing of its Lower Low.
As a result, our short-term Target on this pair is 17.500 which is slightly less than -7.00%, near the Support 2 level.
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USDZAR Short-term bullish signal but bearish overall.The USDZAR pair has been trading within a Channel Down since the April 09 Low. After pricing the latest Lower Low last week, the price is currently on the new Bullish Leg but got rejected today on the 1D MA50 (blue trend-line).
Both past Bullish Legs of this pattern rose by +5.30%. On top of that, their 1D RSI sequences are quite similar. As a result, we take advantage of today's rejection and turn bullish, targeting 18.7500 (marginally under an expected +5.30% rise.
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USDZAR Low risk buy signal.The USDZAR pair is trading below both its 1D MA50 (blue trend-line) and 1D MA200 (orange trend-line), having formed a Channel Down (blue) since the start of the year. The 1D RSI hit the bottom of its Rectangle, so even though there is some limited downside on the Channel Down before forming a Lower Low, the reward is much higher on the upside.
Assuming a Lower Low at the bottom, we expect another +4.40% rise towards the Lower Highs, thus our Target is at 19.1500.
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USDZAR Double confirmation sell signalThe USDZAR pair is trading above both the 1D MA50 (blue trend-line) and 1D MA200 (orange trend-line), on a strong consolidation phase as it approaches the end of an 8-month Triangle. Having been rejected last week very close to not only the Triangle's top but also the (dotted) Channel Up top (Lower Highs trend-line), we have a strong short-term sell signal in our hands. Our Target is Support 1 at 18.555.
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#USDZAR stuck between 18.95 and 18.20. USDZAR some interesting developments for the Rand bulls. 50dma < 200dma (death cross). 3 lower highs forming what could be a potential flat bottom triangle with the base at 18.10-18.20.
Some bullish characteristics here which could be shifting sentiment in favour of the bulls but it's still too early too call. Range bound between 18.95 and 18.20 now. A convincing break above or below the two levels will be needed to force a move in either direction.
USDZAR: Long term Channel Up preparing the final rally.USDZAR is trading around the 1D MA50 on neutral technicals (RSI = 45.374, MACD = -0.003, ADX = 21.007) but on a long term Channel Up for the past 2 years. This current consolidation has been the accumulation period in the two bullish legs prior before the final rally to a Higher High. This is our buy entry and we aim at the top of the Channel (TP = 21.000).
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USDZAR One last High before this 3-month rally is exhausted.The USDZAR pair made a 4-month High last week, extending the 3-month rally since the Higher Low at the bottom of the Channel Up pattern on July 27. With the 1D MA50 (blue trend-line) and 1D MA200 (orange trend-line) supporting, based on the previous Higher High, the price has one last run to make before getting exhausted. Our target is the 1.5 Fibonacci extension at 20.2500.
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USD/ZAR upside to R21.72 after a resistance breakout Rev C&H has formed on the USD/ZAR.
If we get a slight retracement back it could be forming a Right shoulder to an Inv H&S.
Regardless, this looks bearish for the ZAR and bullish for the USD.
Other indicators are showing upside to come for the greenback.
7>21>200
RSI>50
Target 1 will be R21.72. Ouch for the rand.
The government and load shedding is really messing with the economy of this beautiful country of opportunities and diversification.
EUR/ZAR showing strong upside to come - OUCH!This analysis hurts my pocket.
Travelling around and living in Europe means we pay in Euros. Hotels, flights, costs, etc...
And I unpleasantly am doing an analysis showing how the Euro looks like more upside is to come.
It's this kind of analysis I really hope I am 100% wrong.
Anyway, upside is to come bease on the Reverse Cup and Handle.
The price bounced on the 200MA and said, nope we are going up. Let's go euros!
And now, it looks like the next target is to a gloomy R22.44
USDZAR analysis with the rand to strengthen to R15.90?Right off the bat, I normally get short analyses wrong with USD/ZAR.
But the system is the system, so I have to keep to the rules.
Since the trade hit my first target at R18.90, it's been forming an Inverse Cup and Handle.
Now the price has broken below, which means the USD is likely to weaken from here.
The indicators however are conflicted.
7>21 (about to cross)
Price >200 - But the price could also drop below it entering a downtrend
RSI<50
Target 1 for this analysis is an absurd R15.90.
Let's see how this plays out. For argument sake, I hope it's right this time. Paying 27 US Dollars for 2 Prime cans was not the best investment of my life. And I know, I got ripped off!
Anglo making an unexpected short and downside to come to R337.00Inv C&H has formed on Anglo Gold.
21=7 And seems to be crossing down.
Price>200 - This is Bullish but with the price so far away from the MA means, there would be a sling reaction to take the price back down.
RSI<50 - Bearish biased.
Target is at R337.00 for shorters.
THOUGHTS:
This was completely unexpecting as the JSE ALSI seems to be heading up.
The rand has been weakening with a touch of strength in the last week. This could be one of the linchpins to Anglo Gold's potential fall due to the following:
Revenue in Dollars - It's a U.S World!:
Anglo Gold, primarily earns its revenue in U.S. dollars because gold is priced and sold globally in dollars. So when the rand strengthens, the revenue drops.
Impact of a Strong Rand drops gold sales ouch!:
When the rand strengthens against the dollar, it means the same dollar revenue from gold sales converts into fewer rands.
Reduced Profitability - Stronger rands - less rev:
This currency fluctuation can reduce the company's profitability. As their revenue decreases in rand terms while their costs remain the same or may even increase.
Investor Attraction or should we say detraction! :
A decrease in profitability can make AngloGold less attractive to investors, affecting demand for their shares.
Share Price Drop: If investors find the company less attractive, they may sell their shares or choose not to invest, which can lead to a decrease in the share price.
Next analysis I will do is Gold to see what's going on. But yes, I'm definitely short biased.
CHF/ZAR - More pain for the rand t R22.00 - SHOCK WARNING Cup and Handle and a Falling Flag has formed on the daily with the Swiss Franc versus the South African Rand.
There was a one month consolidation and retracement. And now it looks like the buying and demand is kicking in again for the CHF.
We are looking at all yearly highs soon.
7>21>200
RSI=50
Target R22.00
QUICK STORY~!
I was in Switzerland in February and just a three day stay at a basic hotel was R13,500. It's scary to think how depreciated the rand is to this currency and how expensive living day to day is in Switzerland.
A simple Fondue meal with beer can cost up to R4,000.
A simple tea at a restaurant can set you back R120.00.
It is truly a beautiful country with the freshest air and amazing people with drive and ambition. But this is one country that is a privilege to go to if you're from South Africa.
Hence, I really hope I am wrong and that this currency doesn't continue to depreciate the rand.
Have you been to Switzerland and how was your experience?
USD/ZAR (The overdue pullback is here)
View On USDZAR (6 June 2023)
USDZAR is in
* Down in short term (Intraweek)
* UPtrend in Mid term (Intramonth)
* UPtrend in Long term (Last 3 months)
USDZAR is in the strong up trend in recent months/year and it shall be about to change for now.
I am expecting some pull back in USDZAR and it might be better to stay in the Short side for a while.
18.2~18.5 will be a nice support region.
DYODD, all the best and read the disclaimer too.
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UPDATE USDZAR Still on track to the first target R19.80We posted this trade alert around 24 April saying, we have bad news for the South African rand.
The trade is still on track to the first target at R19.80.
Once it surpasses, it'll need to consolidate move in a sideways range before the next breakout.
Hopefully, it won't be up again.
But anyways, the demand is strong for the USD against the ZAR and we can do nothing but wait.
JSE ALSI setting itself for downside to 67,985 due to the bad RInverse Cup and Handle has formed on the JSE ALSI 40.
We need the price to break below the brim level and all hell will break loose.
MA 21>7
RSI < 50
Target 67,985
FUNDAMENTALS.
The rand is majorly in trouble, R19.80 to the US Dollar and R23.90 to the pound.
Is this because of load shedding. Is this because people are leaving the country due to the inefficiencies of the government. Is this because of the world markets coming down? Or is it a combination of all.
Whatever it is, we are seeing downside to come.
Q. Why when the FED raises interest rates does the rand weaken?A. Whenever you think about a country raising interest rates, we need to consider what happens to investors and where they are more likely to deposit their money.
So, as we are expecting an increase in interest rates this month from the FED, there are a few reasons why we can expect the rand to weaken further:
Here are three to consider…
Reason #1: Investors flock to the US Dollar
When the US Federal Reserve raises interest rates, it becomes more attractive for investors to hold or buy US-dollar denominated assets.
That’s because they know they’ll receive a higher rate when they invest in it.
This will also lead to a rise in the US dollar and a drop in smaller currencies (like the rand).
Reason #2: US Dollar is still the fat cat of reserve currencies
A rise in US interest rates may lead to higher borrowing costs globally.
This is because the US dollar is still the world's primary reserve currency.
When we think of gold, Bitcoin and other precious metals, we think of how it’s priced in US dollars.
The problem with this, is that emerging market countries, like South Africa, will
face higher debt-servicing costs as the US interest rates continue to move up.
And this could continue to put pressure on their economies which will lead to a depreciation in the rand.
Reason #3: South Africa is still a big exporter
Also, South Africa remains one of the major exporters of commodities.
And the value of the rand is linked to fluctuations in commodity prices.
So, when US interest rates rise, this leads to a stronger US dollar. And can
cause commodity prices to drop (as they are generally priced in US dollars).
As South Africa is a major commodity exporter, the lower commodity prices would have a negative impact in SA’s export revenue – which can in turn weaken the rand further.
Emerging market currencies to outperform G10 in 2023With the global economy showing more resilience and the Fed slowing its pace of tightening, we believe EM currencies can outperform relative to G10 peer currencies this year. Attractive real yields should result in market participants accumulating exposure to developing currencies, while our assumption for contained banking sector stresses should lead to improved risk appetite.
Inv Cup and Handle on Mr Price heading to R133.00Inv Cup and Handle formed on Mr Price.
The price broke below the brim level and is showing downside momentum.
There is a previous support that still needs to break before all systems go, but my signal definitely gives a sell here.
Indicators all look bearish
200 > 21 >7 MA
RSI <50 - Bearish divergence
Target R133.00
ABOUT The company
Mr Price was founded in 1985 by Laurie Chiappini in Durban, South Africa.
The company started as a small clothing store called Mr Price Fashion, which sold affordable and trendy clothing for young adults.
Mr Price has since expanded its product offerings to include homeware, sportswear, accessories, and beauty products.
The company operates in South Africa, other African countries, and Australia.
South African Rand looking horrid target to R18.40Falling Wedge formed on USD/ZAR
7>21>200 -BUllish
RSI >50
With the Jobs data coming out much better than expected, and with the rising interest rates - this seems to have a positive effect on the US dollar as investors are putting their money in it.
The economy is clearly booming and earnings are coming out better than expected.
My first target for the USD/ZAR is R18.40