BRICS currencies movement for the week – 6 December 2019

While the Rand did improve somewhat this week, it did take some breather compared to other BRIC currencies.

#BRICS currency/USD movements for this week:

Brazil +2.3%
Russia +1.1%
India +0.6%
China 0.0%
South Africa +0.2%

Euro/USD +0.4%

Technically, the Rand is still trading below the Symmetrical Triangle support line. It is also constantly flirting with the next support level, the 200-day moving average at R14.58, with a break and close below this level, most probably seeing us back at my current short-term target level of R14.50. A break below this level, could see us targeting the primary support at R13.85 again, which remain my medium-term target.

Even at the current levels, the USDZAR still don’t find itself at oversold (overbought Rand) according to its 14-day RSI .

Should this be a false break and see a break back into the Symmetrical Triangle, could see the Rand seeking resistance only at the 50-day moving average (R14.83) again, with a break and close above these levels, most probably testing the R15 levels. Next resistance level is R15.13.

My call for this coming week – I still maintain my stance on the Rand, while the positive momentum is still very much in the favour of the Rand. Going to make the trend my friend, which could see us break below R14.50 this week.