The South African Rand has shown resilience since early 2021 by gathering strength at 8.5% against the US Dollar and registering an annual low of 13.3823. And from this low, the USDZAR pair has rebounded in the second week of June, and coupled with the hawkish FOMC effect, made this exotic pair break away from the 14.0000 round number and move towards 14.2000.
Some consolidation above the current price level would be a barrier to the recent rebound, between 14.1946 and 14.5397. The intersection of Tenken Sen and Kinjun Sen has occurred below the Kumo; in general this condition is still read as a weak buy signal. Ideally for the continuation of this rebound, it still needs a retest or at least form a higher low to support technical reasons. AO narrows to the neutral zone and to validate the rebound into a reversal still needs some price acceleration. On the negative side, as long as the resistance at 14.5397 holds, some correction might occur for the price at 13.9332 or 13.6816.
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Ady Phangestu
Market Analyst – HF Educational Office – Indonesia
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