Trading Ideas

#BRICS currencies movement for the Week – 1Mar19

#BRICS currencies movement for the Week – 1Mar19 by SchalkLouw on

Not a great end to week for #SouthAfrica – $ZAR. S&P revised Eskom rating from negative to stable, but clearly the market remains worried. #BRICS currency/USD movements for this week:

Brazil -0.7% 
Russia -0.8% 
India +0.1% 
China +0.1% 
South Africa -1.6% 

Euro/USD +0.3%

I must admit that the one currency that is looking mighty interesting technically this week, is our very own South African Rand. Looking at the $ZARUSD, we find trading at a critical resistance level . Should the $0.07/Rand hold and we see a bounce, the 200-day & 50-day moving averages (at $0.0713 & $0.0716) could be first target, with resistance then coming at $0.0740. A breakthrough this level, could see us test $0.0770. Also, important to note that the graph recently made a nice little GOLDEN CROSS, which confirm that the trend now clearly has turned more positive.

Should we see the current resistance break, watch out for possible further weaknesses, with a possible stop at $0.0685.

Schalk Louw
As Portfolio Manager at PSG Wealth Old Oak and with over 20 years’ experience in the investment industry, Schalk has consistently delivered solid returns to his clients and has certainly become one of South Africa’s most well-known strategists. He started his career in 1994 at the stockbroking company, Huysamer Stals (later ABN Amro). He joined SMK Securities in 1997, (later became BoE Personal Stockbrokers) and was later appointed as director and branch manager. In 2001 he co-founded Contego Asset Management and managed the company as CEO up to March 2014, after which he joined PSG Wealth Old Oak. Schalk has also become a regular household name with investors, with his reports being published in many of the national press. He completed his MBA in 2008.

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