The rand closed the week roughly 7 cents weaker against the dollar after sliding to a high of 19.04 against the dollar on Friday. The rand was boosted by the risk-on investor sentiment at the back end of the week which allowed the rand to keep the pair below the imperative 50-day MA rate of 18.82.
The pair is however forming an upward channel which could allow the pair to break above the 50-day MA resistance rate. The rand’s moves will be dictated by how market participants digest the data from the US. Technically the MACD indicator is holding a buy signal while the RSI still has room to move before entering overbought zones and a break above the 50-day MA will allow the pair to test the blue 23.6% Fibonacci retracement level of 19.10.
On the flip side, a failed break above the 50-day MA will allow the rand to pull the pair on to the support rate of 18.61 and possibly lower towards 18.45. The rand also managed to keep the pair below the black 50% Fibonacci retracement and 50-day MA resistance which is rand positive.
The pair is however forming an upward channel which could allow the pair to break above the 50-day MA resistance rate. The rand’s moves will be dictated by how market participants digest the data from the US. Technically the MACD indicator is holding a buy signal while the RSI still has room to move before entering overbought zones and a break above the 50-day MA will allow the pair to test the blue 23.6% Fibonacci retracement level of 19.10.
On the flip side, a failed break above the 50-day MA will allow the rand to pull the pair on to the support rate of 18.61 and possibly lower towards 18.45. The rand also managed to keep the pair below the black 50% Fibonacci retracement and 50-day MA resistance which is rand positive.