Rand Report - Technical view

Downtrend remains.

RR 29112018

The USD/ZAR currency pair has continued to decline in the near term moving towards our initial target at R13.50/$ (highlighted in our previous note below). The short to medium term trends, as gauged by the 20 day simple moving average (red) trading below the 50 day simple moving average (green) remain firmly down. The price is also now testing the 200 day simple moving average (blue), our gauge of the longer term trend.

Traders who are committed to the short may now consider trailing there stop loss level to a close above the dotted trend line. The downside targets from the current move lower remain R13.50/$ and R13.10/$ respectively.

Rand Report – Technical View (Previous)

RR technical view 29112018
  • USD/ZAR currency pair is breaking down out of the broad sideways range between levels R14/$ and R15/$,
  • The breakout follows the South African Reserve Banks decision to increase local lending rates by 25 basis points
  • The short term declines in the USD/ZAR currency pair (dollar weakness / rand strength) now target the next levels of support at R13.50/$ to R13.10/$ respectively

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This information has been prepared by IG, a trading name of IG Markets Limited and IG Markets South Africa 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. International accounts are offered by IG Markets Limited in the UK (FCA Number 195355), a juristic representative of IG Markets South Africa Limited (FSP No 41393). South African residents are required to obtain the necessary tax clearance certificates in line with their foreign investment allowance and may not use credit or debit cards to fund their international account.

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