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:
South Africa -1.6%
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 . 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.