USD/ZAR hit new record highs at 14.0277 on the day, extending its rally after a brief correction.
- Prices are starting to look heavy at current levels, a modest adjustment likely on charts
- Daily Stochs and RSI are in oversold territory, and short-term pull looks imminent
- The SARB is not expected to defend the exchange rate mainly because of the country's relatively low levels of FX reserves
- Long-term USD/ZAR bull trend intact, extended ZAR weakness likely over coming quarters
- USD/ZAR is currently trading at 13.9738 with immediate support at 13.90 (hourly 20MA), and then at 13.8413 (day's low Sept 24)
Recommendation: Good to sell rallies around 13.9800, SL: 14.0350, TP: 13.8500.
