Currency Analyst since 2010

USD/ZAR: buy target

Dima Chernovolov

• USD/ZAR approaches major resistance level 11.800

• Next buy target - 11.900

USD/ZAR recently reversed up sharply from the combined support zone lying at the intersection of the multiple support levels. These levels are – the lower daily Bollinger Band, the 50% Fibonacci Correction of the previous sharp minor impulse 1 form last October, the support trend line of the wide daily up channel from August of 2013 and the support trend line of the more recent daily down channel from December (which has enclosed the preceding minor ABC correction 2).

The upward reversal from this support completed the wave 2 and started the next impulse 3 which broke the aforementioned daily down channel and then stopped close to the major resistance level 11.800. If USD/ZAR breaks above 11.800, the pair can then rise to the next buy target 11.900.

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