USDZAR in new range

The USDZAR has traded in a range from R13.90 to R19.35 for 2020 so far. We have seen the ZAR retrace back to just above the 38.2% Fibonacci level, that is from the R19.35 high we have seen. We expect this level to be supportive in the near term and the ZAR can possible trade back towards the R18.10 level. This level was the 23.6% Fibonacci retracement level and it looks like the ZAR will settle into this new R17.30 to R18.10 range for the time being. We can also see from the momentum circled in red in the bottom part of the chart, that the ZAR will find support at these levels. We will therefore encourage importers to buy some USD at these levels to cover short term commitments.