USD/ZAR setting up for bullish rally to 23

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

Author

Mthokozisi Mpofu

Knars Capital

Mthokozisi Mpofu is the Managing Director of Knars Capital Pvt Ltd, an investment advisory firm helping African SMEs secure growth capital and become investor-ready.

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