USD/ZAR

Positive sentiment for the South African rand might be over as the cross rate reaches strong support area formed by the long-term trend line and moving averages. Both 3 year-long trend line and the 200-day moving average are forming support at 10.35 levels. RSI (Relative Strength Index) is also testing 50 levels; which is considered to be the lower boundary for a bull market. Over the past 3 years cross rate managed to rebound from the 200-day average and the RSI rebounded from 50 levels simultaneously. Expect a similar rebound from the strong support area and weakness in South African rand against the U.S. dollar.