The top side of the wedge held its ground and the break below the 61.8% Fibo at 19.87 has allowed the rand to pull the pair below the 50- and 200-day MA.
There is strong support levels at 19.75 and 19.67 and tomorrow's non-farm payrolls print will determine whether this is the long awaited break-out of the blue wedge or a fake-out.
A weaker than expected NFP print will allow the rand to pull the pair onto the support at 18.50 while a stronger than expected print will see the pair pop up like a submerged beach ball to re-test 18.97, in my opinion.
Fundamentally the rand has benefitted from a broad-based dollar which has seen the DXY fall more than 2% over the past 4-weeks, a strong rally in precious metal prices and over-all risk-on investor sentiment with US indices hitting record high. A failed move back above the 50- and 200-day MAs will allow the rand to work back more losses towards navy blue range between
18.25 and 18.40.
Technically the pair is heavily oversold on the 4H timeframe but the is room to move lower on the daily timeframe.
There is strong support levels at 19.75 and 19.67 and tomorrow's non-farm payrolls print will determine whether this is the long awaited break-out of the blue wedge or a fake-out.
A weaker than expected NFP print will allow the rand to pull the pair onto the support at 18.50 while a stronger than expected print will see the pair pop up like a submerged beach ball to re-test 18.97, in my opinion.
Fundamentally the rand has benefitted from a broad-based dollar which has seen the DXY fall more than 2% over the past 4-weeks, a strong rally in precious metal prices and over-all risk-on investor sentiment with US indices hitting record high. A failed move back above the 50- and 200-day MAs will allow the rand to work back more losses towards navy blue range between
18.25 and 18.40.
Technically the pair is heavily oversold on the 4H timeframe but the is room to move lower on the daily timeframe.