Rand to strengthen into new year and beyond


It has been interesting to note the progress of one of the less fashionable pairs, the USDZAR. This has had a bit of a lively summer, firstly ranging between 14.20 & 15.30 on August 13th, then going on to reach a chart high of 15.6950 on September 5th. Its behaviour since then has still been quite volatile, but what we can see on the daily charts is a repeating pattern of decline, a rally that fails to reach the previous high, followed by another decline. This has happened 5 times since the September high was established, and it would seem reasonable to expect this trend to continue. We feel selling rallies is a safer strategy than buying dips, which should only be seen as profit-taking opportunities. In the medium term, and in the absence of any unforeseen external stimuli, we’d expect to re-visit the July lows of 13.07, and then review the situation.

Share this news

Related posts

Economic 2019-07-31_FOMC.png

Countdown to FOMC on 31st of July


Market expects 0.25% rate cut on 31st of July 2019

Read more
Calendar Calendar.jpg (1)

The week ahead 15.07.2019


Upcoming releases next week

Read more
Stock Market US stock-exchange.jpg

Stock market rally


Stock market rally after Powell transcript

Read more
Forex News yen.jpg

Dollar Yen breaks lower


Dollar Yen breaks lower

Read more