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CEEMEA FX Price Signal Summary - USDZAR Is Approaching Key Support

EMERGING MARKETS
  • Last week’s sell-off in USDZAR resulted in a break of support at 18.4946, the Jun 3 low. Clearance of this level highlighted a short-term reversal of the May 21 - Jun 6 rally. Note that this week’s move lower reinforces this set-up. The move down exposes 18.0290, the May 21 low and a key support. A clear break of this level would strengthen a bearish theme and open 17.9434, 76.4% of the Jul 27 - Ict 6 2023 bull leg. Price action is likely to remain volatile near-term. A reversal higher would refocus attention on resistance at 19.0054, the Jun 6 high. Initial resistance is at 18.6036, the 50-day EMA.
  • The path of least resistance in USDTRY is unchanged and remains up. The recovery Friday and Monday’s gains, highlight a resumption of the trend, following a recent sideways corrective phase. The 50-day EMA marks initial support, at 32.2390 today. Scope is seen for a climb towards the 33.00 handle.

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