- South African beach up For $ 20c.
- The consequences of the uprising are expected in future economic data.
- Technical analysis may indicate a disadvantage.
ZAR FUNDAMENTAL BACKDROP
BEACH PURCHASED BY EXTERNAL GLOBAL FACTORS
rand started the week with the front leg about 1.3% (at the time of writing) US dollar. Support comes from a stronger link consumer goods such as iron ore, platinum and gold with a weaker green back – dollar index (DXY) less than 0.17%.
US PRODUCTION PMI’S LATER TODAY
USA mthe production PMI deadline is today (see calendar below) for both ISM and Markit sources. Both are expected to be printed more than previously reported, and any surprise could lead to significant price fluctuations in both cases. for USD / ZAR a couple.
From a South African perspective, ABSA Manufacturing’s PMI was 43.5 in July, significantly lower than the previous 57.4. The impact of the recent unrest and looting in the two major provinces is likely to be a major factor. The general rule of thumb is that if the production PMI is above 50, the economy is considered to be expanding and vice versa.
USD/ ZAR ECONOMIC CALENDAR
USD / ZAR 4-HOUR TABLE
The chart was compiled by Warren Wenket, IG
USD / ZAR fell below basic support by 61.8% Fibonacci (14.5030) – Fibonacci retracement made from February 2018 to April 2020 high. It follows shooting star candlestick pattern I mentioned it analysis from last week which has since developed as expected.
Today’s tough gear is still looking for support as it cleans up 14.4000 horizontal level. Cart EMA The crossover last week has also been played when the 20-day EMA exceeded the corresponding 50-day EMA.
With this in mind, Relative Strength Index (RSI) has entered the resold territory after the flow (green) pricing downtrend. Signals sold over the RSI may indicate a deterioration and the possibility of price reversals in favor of below the resistance level.
– Written by Warren Venketas for DailyFX.com
Connect and follow Warren on Twitter: @WVenketas