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Rand report - technical view

The rand while in a long term consolidation is giving some technical indications of shortterm weakness to follow.


While the USD/ZAR rallied for the most part of 2018 (USD strength / rand weakness), the currency pair has moved in a sideways fashion over the course of 2019 thus far.

A daily chart of the USD/ZAR shows the sideways range to be between levels R13.10/$ (support) and R15.05/$ resistance. In the short term we consider another smaller price range between levels R13.75/$ and R14.60/$. The USD/ZAR price looks to have formed a price reversal (circled white) off this support level (R13.75/$). The price reversal is accompanied by the Stochastic crossing out of oversold territory.

These are bullish suggestions in technical analysis terms and in turn further gains in the USD/ZAR are expected. R14.60/$ becomes the initial resistance target from these assumptions, while a close below R13.75/$, would consider these bullish indications to have failed.


While the macro catalysts for the GBP/ZAR vary to that of the USD/ZAR, the chart identifies several similarities. The GBP /ZAR remains in a broad sideways consolidation as well between levels R17.20/GBP and R19.30/GBP. The price looks to currently be reversing off a midpoint of this range at around R18.35/GBP. This price reversal is also supported by the stochastic crossing out of oversold territory.

These bullish indications suggest a rebound in the GBP/ZAR with R19.30/GBP an upside resistance target. Should the GBP/ZAR instead move to close below the R18.35/GBP support level, the short-term bullish indications would be deemed to have failed.


The EUR/ZAR range is considered between levels R15.20/EUR and R16.70/EUR. The price is currently reversing off the R15.65/EUR level supported by the stochastic crossing out of oversold territory.

These indications predict further gains in the currency pair with R16.50/EUR the initial resistance target. Should the price instead move to close below support at R15.65/EUR, the bullish indications would be deemed to have failed.

This information has been prepared by IG, a trading name of IG Markets Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. See full non-independent research disclaimer and quarterly summary.

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