FX.co ★ sabrina.fay | USD/ZAR

Sellers in the USDZAR pair started moving south from the middle of the week, but only managed to drop to 16.40–16.45. For the decline to continue, it needs to consolidate below 16.40, after which the bears will have a chance to head towards 16.30 and 16.20. It’s a decent scenario, but we shouldn’t forget that sentiment can change dramatically over the weekend. This Monday could again bring surprises; it looks like the US and Iran still won’t make peace, so a GAP is a realistic option. If buyers move up from the current levels and consolidate above 16.50, then the USDZAR rise can continue towards 16.60. After consolidating above 16.60, it can move up to 16.65 and 16.70, and then head to 16.80 and 16.90. During the rise (starting from 16.60), it will be possible to look for selling opportunities, but the situation will need to be assessed based on actual price action.