USDZAR FUNDAMENTAL AND TECHNICAL IDEA
Updated
WHILE STILL WAITING ON THE POSSIBILITY OF THAT REVERSAL H&S FORMATION I THINK WE WILL SEE SOME PULL BACK IN THE PAIR IN THE COMING WEEK ON THURDAY WE SAW ZAR GAIN STREGTH AGAINST THE DOLLAR THEN CAME THE EXTENSION OF THE LOCKDOWN AND WITH THE STATE OF OUR ECONOMY A REVERSAL COULD BE HIGHLY UNLIKELY AND WE COULD STILL HIT THAT 20.0000 AGAINS THE DOLLAR IN THE COMING WEEKS OR EVEN DAYS...
FUNDAMENTALLY THE LAST WEEK HASNT BEEN ALL BAD HENCE THE GAINS IN ZAR
INVESTING.COM "We're growing in confidence that for the first time this year many of the negative events that rocked the global and domestic economies are largely priced into the currency and that the rand has reached the broad top of our forecast," said Nedbank strategist Walter de Wet.
"We expected substantial rand weakness into mid-year, which has transpired faster than we had expected. At the same time, we forecast a recovery in the rand below 15.00," de Wet said.
In fixed income, the yield on the 10-year government bond due in 2030 ZAR2030= was down 16.5 basis points to 10.810%.
The Johannesburg Stock Exchange's Top-40 index .JTOPI climbed 2.41% to close at 43,802 points while the All-Share index .JALSH rose 2.7% to close at 47,950 points.
The rally was driven by the country's banks and mining companies. The FTSE/JSE bank index .JBANK was up by 7.15% while the resources index .JRESI was up 3.54% by the end of trading
I'M HOPING THIS WEEK WE'LL STILL SEE ZAR GAINING SOME STRENGTH
TARGETS FIB 0.786 ( 17.39587)
TP2 0.618 ( 17.0453)
SL - RISK MANAGEMENT
PERIOD - SWING TRADE
FUNDAMENTALLY THE LAST WEEK HASNT BEEN ALL BAD HENCE THE GAINS IN ZAR
INVESTING.COM "We're growing in confidence that for the first time this year many of the negative events that rocked the global and domestic economies are largely priced into the currency and that the rand has reached the broad top of our forecast," said Nedbank strategist Walter de Wet.
"We expected substantial rand weakness into mid-year, which has transpired faster than we had expected. At the same time, we forecast a recovery in the rand below 15.00," de Wet said.
In fixed income, the yield on the 10-year government bond due in 2030 ZAR2030= was down 16.5 basis points to 10.810%.
The Johannesburg Stock Exchange's Top-40 index .JTOPI climbed 2.41% to close at 43,802 points while the All-Share index .JALSH rose 2.7% to close at 47,950 points.
The rally was driven by the country's banks and mining companies. The FTSE/JSE bank index .JBANK was up by 7.15% while the resources index .JRESI was up 3.54% by the end of trading
I'M HOPING THIS WEEK WE'LL STILL SEE ZAR GAINING SOME STRENGTH
TARGETS FIB 0.786 ( 17.39587)
TP2 0.618 ( 17.0453)
SL - RISK MANAGEMENT
PERIOD - SWING TRADE
Trade closed: stop reached
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