USD/ZAR: Strong bullish momentum – Rabobank
|The USD/ZAR price action over the past few months allows analysts at Rabobank to use the 2011-2016 rally as a yardstick to obtain higher targets with a relatively high degree of confidence.
Key quotes
“If we use the 2011-2016 rally as a yardstick, USD/ZAR has already exceeded the Fibonacci 61.8% extension and is on track to revisit the 76.4% extension at 19.4868. Before the 100% extension at 21.9515 comes into focus, USD/ZAR would have to clear the psychological level of 20 first.”
“The only issue we have with the bullish view on USD/ZAR is the rapid pace of recent gains that resulted in a parabolic move higher. The higher USD/ZAR trades in the coming days, the bigger the risk of a sudden correction.”
“We would prefer to witness a proper corrective short-term pullback in the very near-term before USD/ZAR pushes higher. We have to admit, however, that waiting for such a correction could be a pointless exercise, so strong is the bullish momentum at this stage.”
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.