Mthokozisi Mpofu
Knars Capital
Last week we had a bullish move higher on USD/ZAR and since then we have had a clear 3 wave correction. We are approaching the 78.6 Fibonacci level (18.21804) as our critical support level for a move higher.
The current count is of an (abc) zigzag after the sharp move higher that we had. If we see a break of the 78.6 Fibonacci level, we should not break (18.01659) as that would invalidate our bullish count and we may have a more complex pattern forming.
THe possible target of 23 is based on Fibonacci extensions on the current bullish count. If we are to complete the 5 wave move higher we can expect to hit 23.
Res: 19.0000; 19.35000; 20.60500
Sup: 18.21804; 18.01659; 17.84586
EUR/ZAR
EUR/ZAR is also showing us some key levels we need to look out for to the upside. A break of the red dotted line will invalidate our move higher on this pair. Critical support is (19.81476).
Res: 20.36708; 20.61017; 20.90855
Sup: 19.84228; 19.58776; 19.20000
None of the material published constitutes a trading recommendation of any particular security, portfolio of securities or investment strategy. This should not be taken as personal advice concerning nature, potential, value or suitability of any particular security, portfolio of securities, investment strategy or other matter. Past performance does not guarantee future results.
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