Quick Fire Dollar / Rand Update
22 August 2022
Weekly Close
It’s been a long three weeks, with volatility being the order of the day and the ZAR trading on its steam, and frankly, I have had no objective view, hence my reluctance to post anything.
Please keep the last few weeks in the memory bank when reading the below commentary.
As most of you will know, I have been bearish on the ZAR and looking for upside targets from R17.50 – R18.30.
This was predominantly why I was confused, as I felt the chart could be done.
Based on this last move, I am convinced that we will see the last leg higher and although I have R18.30 as an upside target, please note that the ZAR has a propensity to overshoot in both directions.
Once this last leg up has been completed, my LT view that we see the ZAR strengthen is still very much on the cards.
The carry is your friend, never forget.
Daily Candle
This chart is looking great and complements the Weekly Close perfectly.
Please note that a week in trading could be a lifetime and especially so when it comes to the Dollar / Rand with Weekly targets around R17.65 and daily targets that could trade as high as R18.70.
The Daily oscillator is well on its way, plus the general formation has me bullish on the USD in the ST.
My general feeling is that the DXY has a leg higher and the Euro a leg lower and that USD strength will persist for a few weeks.
Good luck out there, and remember, trade the market, do not marry it!