BRICS currencies movement for the week – 29 November 2019

Another solid week for the South African Rand, bucking the trend of most BRICS currencies.

#BRICS currency/USD movements for this week:

Brazil -0.9%
Russia -0.8%
India +0.1%
China +0.1%
South Africa +0.4%

Euro/USD -0.1%

Technically, the Rand dropped below the bottom of the Symmetrical Triangle support line again. Next support level remains the 200-day moving average at R14.57, 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 (R14.87) 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 believe the Rand have some legs, after this week’s confirmation of the breakthrough the Symmetrical Triangle. It also still enjoy some positive momentum. Target for the week R14.50.