Technical Analysis suggests shorting EurZar

The technical structure of EurZar is very interesting at the moment and seems now reporting an opportunity chance on the South African currency in an enlarged optical view.
With regard to the technical analysis, the bull market of EurZar is in place since 2000, and the upward movements as those of 2001, 2008 and 2014 have always had the characteristic of going over the two standard deviations of the regression upward line. These speculative pressures have always brought the monthly RSI in overbought and the MACD to levels similar to those of 2014. The downward (cutting of the signal line from the Macd has represented in 2002 and 2009 an effective bearish signal. This signal in the last few weeks has been joined by a bearish break of the RSI that seems to anticipate in turn a bearish break of the moving averages beam that has had a positive trend in the last 15 years as a dynamic support / resistance. But there is more than this.



Due to the devaluation of the South African change, the current account deficit compared to the GDP has gradually increased since the peak of 2012, a similar movement to that of 2007-2008 that anticipated the subsequent strengthening of the Rand against the Euro (graphic source: Bloomberg).