#BRICS currencies movement for the Week – 20 September 2019
We got so use to the Rand being on steroids lately, that I must admit that this weakness does hurt somewhat. Not even an unchanged rate announcement from the SARB could help the Rand, telling me that deep down, a few currency traders were hoping for a cut. As mentioned last week, the ZAR was somewhat overbought (oversold according to USDZAR), which could also imply some “profit-taking” (refer to my last week’s caution).
Look, we did see some USD strength as well, but clearly the ZAR was hit a lot harder this week.
#BRICS currency/USD movements for this week:
Brazil -1.5%
Russia +0.5%
India -0.1%
China -0.1%
South Africa -2.3%
Euro/USD -0.5%
Technically, the USDZAR reached no levels that would make me believe that the trend has turned and remained below the R15/USD level.
The USDZAR moved out of oversold (overbought according to ZARUSD) according to the 14-day RSI .
Should we return to an improving ZAR from current levels, support could first be found at the 50-day Moving Average (at R14.76) followed by at the 200-day Moving Average at R14.33. a Close below this level, targeting the main support at R13.85 again.
The R15/USD remain a firm resistance level. A break and close above these levels will have me monitoring the R15.35 levels with great anticipation. A break above these levels would place us slap-bang back into the diagonal parallel channel.
Look, we did see some USD strength as well, but clearly the ZAR was hit a lot harder this week.
#BRICS currency/USD movements for this week:
Brazil -1.5%
Russia +0.5%
India -0.1%
China -0.1%
South Africa -2.3%
Euro/USD -0.5%
Technically, the USDZAR reached no levels that would make me believe that the trend has turned and remained below the R15/USD level.
The USDZAR moved out of oversold (overbought according to ZARUSD) according to the 14-day RSI .
Should we return to an improving ZAR from current levels, support could first be found at the 50-day Moving Average (at R14.76) followed by at the 200-day Moving Average at R14.33. a Close below this level, targeting the main support at R13.85 again.
The R15/USD remain a firm resistance level. A break and close above these levels will have me monitoring the R15.35 levels with great anticipation. A break above these levels would place us slap-bang back into the diagonal parallel channel.