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CEEMEA FX Price Signal Summary - USDZAR Reversal Extends

EMERGING MARKETS
  • This week’s sell-off in USDZAR has resulted in a break of support at 18.4946, the Jun 3 low. Clearance of this level highlights a possible short-term reversal of the May 21 - Jun 6 rally. This exposes 18.2212, the May 29 low, and 18.0290, the May 21 low and a key support. 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 18.6352, the 50-day EMA.
  • The path of least resistance in USDTRY is unchanged and remains up. Short-term pullbacks are considered corrective. The 50-day EMA marks initial support, at 32.1859 today. Scope is seen for a climb towards the 33.00 handle over the medium-term.

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