The Rand report

Initial price target realised.

Last week we identified the bullish engulfing candle pattern (circled blue) off the R12.80/$ level. The candle pattern was suggestive of further gains in the USD/ZAR currency pair in line with the larger falling wedge chart pattern (highlighted red). The initial upside target was R13.20/$, while a close below R12.80/$ was used as the failure level. 

Over the last week the USD/ZAR has moved to the initial target of R13.20/$. A price close above this level would call for further gains in the USD/ZAR currency pair with the next level of resistance considered at R13.65/$. Should this situation occur, the stop loss or failure level for the short term trade would be ratcheted up to a close below R13.07/$. 

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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.