USD/ZAR: sell target
• USD/ZAR reverses from multi-year resistance level 11.800
• Next sell target - 11.000
USD/ZAR continues to decline after the earlier reversal from the major, multi-year resistance level 11.800 (which also previously reversed the pair strongly in 2008, as you can see from the monthly USD/ZAR chart below). The resistance zone near this resistance level was further strengthened by the upper monthly Bollinger Band. The downward reversal from 11.800 completes the preceding sharp extended primary upward ABC corrective wave II from May of 2011.
With the monthly RSI and Stochastic indicators still moving inside the overbought areas, USD/ZAR is likely to fall further in the nearest time – in the direction of the next round support level 11.000 (intersecting with the 50% Fibonacci Correction of the preceding intermediate impulse (5) from April of last year).