Free Trial

USD/ZAR Confirms Bear Channel Break, Hovers Above 50dma

SOUTH AFRICA
  • USD/ZAR opens marginally lower this morning, mirroring price action in the BBDXY.
  • The cross trades +2.6% higher at the end of the week, having confirmed a break above 14.00 in yesterday's session.
  • Technically, we saw a significant break of the long-term bear channel pattern held since March 2020 as Covid cases jumped above 10k and the Fed delivered a hawkish tilt at this week's meeting – supporting USD upside.
  • USD/ZAR price action remains above the 50dma, with the RSI signalling sustained bullish momentum at 58.88.
  • Virus conditions continue to deteriorate in Gauteng with the military being called in for support.
  • Govt is pressing to boost the vaccine rollout, but so far it remains fairly challenging and slow.
  • Strike risks increasing in the near-term as unions are set to reject Govt wage offers – but FinMin Mboweni has noted that govt is unable to afford anything greater than its is already offering.
  • Intraday Sup1: 13.9834, Sup2: 13.9419
MNI London Bureau | +44 020-3983-7894 | murray.nichol@marketnews.com
MNI London Bureau | +44 020-3983-7894 | murray.nichol@marketnews.com

To read the full story

Close

Why MNI

MNI is the leading provider

of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.

Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.