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East London - Following a recent and steady decline of the rand against the dollar since August 12, the local currency has now shown further weakness, after breaking through its familiar trading range of R10.20/$.
As anticipated, subsequent to the bullish pin bar posted on Friday, showing rejection of lower prices and the R10.20 support holding, dollar buyers to the rand stepped in substantially on Monday and Tuesday of this week.
Rallying up to R10.40 this week week, the rand slides yet again to the dollar.
Rand bearish momentum surged as American markets opened up on Monday afternoon (South African time). Since then, the rand continued it's steady decline against the dollar until Mid-day on Tuesday, where it seems to have momentarily stalled at the minor resistance level of R10.40.
Should the rand decline persist from the current price of 10.40/$ we could see further dollar upside with a steady rally toward R10.60 overhead resistance level.
Alternatively, if the rand can show some strength against the dollar from R10.40 (where it currently is), we could then see some consolidation above the R10.20-level. Or perhaps a more steady pullback to this support level.
Either way, its seems as though from this level there will once again be dollar buyers stepping in in lieu of rand weakness at the R10.20 "value" and "relative low" level.... (should we get here.)
On the dollar downside to the rand, should price decline and the R10.20 support level prove not to hold, then we could look at the rand strengthening against the dollar to the R9.80 support level once again.
- Fin24
* Brandon Flynn is a technical analyst, trader and trading coach, who specialises in identifying trends, major support and resistance levels using multiple time-frame analysis and price action trading with candlestick formations. Follow him on Facebook.
As anticipated, subsequent to the bullish pin bar posted on Friday, showing rejection of lower prices and the R10.20 support holding, dollar buyers to the rand stepped in substantially on Monday and Tuesday of this week.
Rallying up to R10.40 this week week, the rand slides yet again to the dollar.
Rand bearish momentum surged as American markets opened up on Monday afternoon (South African time). Since then, the rand continued it's steady decline against the dollar until Mid-day on Tuesday, where it seems to have momentarily stalled at the minor resistance level of R10.40.
Should the rand decline persist from the current price of 10.40/$ we could see further dollar upside with a steady rally toward R10.60 overhead resistance level.
Alternatively, if the rand can show some strength against the dollar from R10.40 (where it currently is), we could then see some consolidation above the R10.20-level. Or perhaps a more steady pullback to this support level.
Either way, its seems as though from this level there will once again be dollar buyers stepping in in lieu of rand weakness at the R10.20 "value" and "relative low" level.... (should we get here.)
On the dollar downside to the rand, should price decline and the R10.20 support level prove not to hold, then we could look at the rand strengthening against the dollar to the R9.80 support level once again.
- Fin24
* Brandon Flynn is a technical analyst, trader and trading coach, who specialises in identifying trends, major support and resistance levels using multiple time-frame analysis and price action trading with candlestick formations. Follow him on Facebook.
