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USDZAR Uptick Following US Data Short-Lived, Conditions Remain Bearish

The brief uptick in the USD index on the back of the US data prompted an uptick in USDZAR to 18.50, though the pair has since reversed the move higher. Gains stand at 0.2% on the day with pre-Fed levels still some way off at 19.00 as we approach the holiday period.
  • Technically, a short-term bearish theme in USDZAR still dominates for now following last week’s sell-off which resulted in a breach of a number of short-term supports. A continuation lower would signal scope for a move towards 17.9434, 76.4% of the Jul 27 - Oct 6 bull leg. Initial resistance is at 18.6824, the 50-day EMA.
  • Gold is now on track to test the Dec 1 high at $2075.41, clearance here would then open the alltime intraday high at $2135.39 posted on Dec 4. The yellow metal is largely benefiting from the pullback in the dollar (in turn, likely triggered by month-end flows favouring USD sales due to Dec's sharp equity rally).

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