USD/ZAR ANALYSISUSD/ZAR respecting Fibonacci resistanceVaccine optimism gaining favorKey South African financial information sche
USD/ZAR ANALYSIS
- USD/ZAR respecting Fibonacci resistance
- Vaccine optimism gaining favor
- Key South African financial information scheduled subsequent week
VACCINE AFFIRMATION TO BE CONFIRMED
South Africa patiently awaits readability on vaccine negotiations and rollout methods. Whereas President Cyril Ramaphosa touched on vaccine procedures and sources in his handle earlier this week, concrete dates and figures are nonetheless but to be revealed. With file ranges of infections and rising demise charges, vaccine arrivals can’t come sooner. The announcement that 1.5 million doses will arrive this month from India has introduced some respite and positivity amongst the general public and monetary markets. Success of the vaccine would be the subsequent space of debate however for now receiving the vaccine is on the forefront for South Africans.
TECHNICAL ANALYSIS
USD/ZAR DAILY CHART
Chart ready by Warren Venketas, IG
In my article earlier this week I discussed the 15.4865 resistance degree as a possible reversal level which has since been established after the Rand pulled again a few of its misplaced beneficial properties. Worth motion suggests additional help might be seen on the 15.0000 psychological degree.
If a confirmed break beneath 15.0000 ensues, this might mark the continuation of the long-term downtrend from mid-2020. Subsequent help would then be in focus between the 61.8% Fibonacci (14.5606) and 14.5000 ranges. The Relative Energy Index (RSI) signifies slowing bullish momentum which helps this bearish bias.
SOUTH AFRICAN ECONOMIC DATA IN FOCUS NEXT WEEK
Subsequent week’s highlight shall be on the SARB rate of interest determination (see calendar beneath). The bulk consensus (17/20) is that the Reserve Financial institution will preserve the present 3.50% repo fee with 3/20 economists anticipating a 25bps foundation reduce – Supply: Reuters. We all know that the Financial Coverage Committee (MPC) will base their selections on information which might go towards the present majority economist outlook subsequently, the potential for a shock reduce shouldn’t be utterly disregarded.
Retail Gross sales information for November has additionally been pushed ahead to subsequent week (beforehand scheduled for January 13, 2021) whereas December’s inflation information additionally options on the agenda. Inflation figures should not anticipated to be favorable however any optimistic variation could spark worth swings within the Rand.
Supply: DailyFX Financial Calendar
Beneficial by Warren Venketas
Buying and selling Foreign exchange Information: The Technique
USD/ZAR: KEY POINTS TO CONSIDER MOVING FORWARD
- 15.4865 resistance and 15.0000 help ranges
- Native vaccine rollout and instances
- Rate of interest announcement subsequent week
— Written by Warren Venketas for DailyFX.com
Contact and observe Warren on Twitter: @WVenketas