USDZAR Pushing Even HigherHi there,
Fundamentals :
The South African rand was stable in early trading as investors awaited the release of producer price inflation data and the central bank's rate decision. The rand had strengthened the previous day after consumer inflation fell for a second consecutive month. However, analysts believe that this is unlikely to affect interest rates for now. The South African Reserve Bank governor has stated that he wants inflation to decline sustainably before considering rate cuts. The producer price inflation data is expected to show a decline from the previous month. All economists polled predict that the central bank will leave rates unchanged.
Technical Analysis :
The continuity of trends in the market cannot be guaranteed, as they are influenced by various factors. To predict the direction of a trend, one must consider both fundamental and technical analysis. Fundamental analysis involves examining underlying factors like economic indicators, political events, and market sentiment, -which in this case, appears uncertain.
I noticed that 17.85705 is a significant support area for the zone marked as (2), which is in the range of 18.61774. Furthermore, the (A) point is a lower high compared to (V), indicating that bears are betting on the Low (2) to be broken.
Well, both (2) and the B of ABC are too strong to be influenced by bearish interests, especially considering the uncertainty in fundamentals. So we only have bullish interests in this scenario.
However, if the price breaks 17.85705, the setup will become invalid.
So up we go squeezing above 20 and nearing 24.
Happy Trading,
K.
