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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.
SOUTH AFRICA
- USDZAR has been retracing sharply higher this week, with the rand potentially impacted by the recent flooding in and around Durban.
- Interestingly, the slight decrease in price volatility (VIX) in recent days did not generate some support for 'risk on ZAR' , which has historically performed well when price volatility falls.
- The pair broke above its key resistance at 15.1050 today, which corresponds to the 200DMA and the high of its LT downward trending channel.
- USDZAR is now testing its 15.24 resistance, which corresponds to the 38.2% Fibo retracement of the 13.4170 – 16.3670 range.
- A break above that level would open the door for a move up to 15.2740 (100DMA).
- Technical outlook is now slightly ‘bullish’ following the recent break out; however, risk reward on the topside remains limited as elevated real yields and strong 'fundamentals' could bring back interest on ZAR.
Source: Bloomberg/MNI
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.
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