Over the last week the USD/ZAR did pullback, but not quite as far as R12.70/$, but rather reaching a low of R12.80/$. Circled blue we see how the currency pair has reversed off this level once again. The catalysts for dollar strength / rand weakness, this time, has come from disappointing employment data being released out of South Africa. The pattern circled blue once again is called a bullish engulfing candle pattern. Implications are that the pullback has ended and further gains on the USD/ZAR pair are expected. R13.20 once again becomes the upside target favoured from the chart pattern (wedge) and candle pattern (bullish engulfing). A price close below R12.80 (recent support) might be used as a failure level by short term traders. The current setup suggests a risk to reward (R:R) scenario of just better than 1 to 1. While this might not be the most favourable R:R scenario, a break above the R13.20/$ level, could improve the reward assumption by opening up a possible move to R13.65, which would be considered the next upside resistance target.