USDZAR at testing level. Markets globally are questioning the recent bull rally, more stimulus coming which means higher risk SARB will cut rates again next week...best to stay long USDZAR (short rand)
Range bound betwen R18 - R19. Report released late Thursday by SA treasury just highlights how bad the deterioration in debt ratios, loss of tax revenues, and hit to growth that Covid has caused.
We are in unchartered territory @Crypto_Curry told me to think about the fundamentals. Trajectory remains for a weaker currency fundamentally, however all countries that have materially large, or at risk twin deficit,s have also felt the pain of a strengthening USD compounded by domestic situation and unknown economic impact of COVID. With no technical reference...
Currency certainly being driven by liquidity moves in developed markets, could easily retrace and test 16 and fall further if coordinated responses to Covid grow. red lines show where it will reject support. However if the situation accelerates domestically and there is no liquidity response locally the red line guide to support levels. Hard one to call right...
