The USDZAR pair completed an ABC corrective wave at the end of March after the higher-than-expected 50bps rate hike from the SARB allowed the rand to pull the pair into the support range between the 50%- and 38.2% Fibo retracement rates at 17.68 and 17.92, respectively. Since the start of April, the dollar (DXY) has found some support in the range between 101.36 and 101.81 and as a result, has the rand on the ropes heading into the 2Q2023. The aggressive bounce out of the blue support range is indicative of a first impulse wave and I suspect this next 5-wave impulse will see the pair complete the 5th wave of its major cycle which will push the pair onto its 2020 peak at 19.35.
(Please see attached my previous idea for the 1H2023 for a wider view)
Technically there is a buy signal on the MACD indicator which is rand negative, and the daily RSI has room to move higher before hitting overbought zones.
(Please see attached my previous idea for the 1H2023 for a wider view)
Technically there is a buy signal on the MACD indicator which is rand negative, and the daily RSI has room to move higher before hitting overbought zones.
