USD/ZAR - Is it possible we could see R16.20 again?
Finally an analysis, I am hoping to work out with the ZAR.
We are expecting further downside for the USD against the ZAR
M Formation
Price <20 and 200MA
Target R16.20
Is it possible?
Here are some fundamental factors.
💵 Weaker US dollar thanks to soft US labor data → Poor non-farm payroll & jobs figures in the US make rate cut odds rise, hurting the USD.
⚒️ Commodity boost → Gold & other metals are up, and since SA is a big miner/exporter, that means more USD flowing into SA economy, strengthening the rand.
📉 Fed maybe easing → Market expects US rate cuts sooner; that makes USD less attractive vs emerging-market currencies like ZAR.
📊 Good domestic signals → Business confidence, retail sales and some economic activity in SA have been decent, helping investor sentiment for the rand.
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