SHORT on USD/ZAR - Bearish BAT + Fundamentals
USD/ZAR presents a nice short, as recent gains in USD may not be sustainable. Price broke above the parallel channel, I believe the pair is overpriced. A nice Bat-Pattern indicates a good short back in the channel.
Target around 12.0000
Fundamentally, rate increase and the US 10 year treasury yield at its highest since 2014 provoked such a hike. Take the trade but watch the US yield closely. As Europe and Canada are increasing their rates as well, the US dollar is expected to lose value. In addition, the IMF increased its forecast for growth in South Africa to 3.4% for 2018; we can hope for unemployment to go down in the next months. I see a good chance for USD/ZAR to go down even further.
Target around 12.0000
Fundamentally, rate increase and the US 10 year treasury yield at its highest since 2014 provoked such a hike. Take the trade but watch the US yield closely. As Europe and Canada are increasing their rates as well, the US dollar is expected to lose value. In addition, the IMF increased its forecast for growth in South Africa to 3.4% for 2018; we can hope for unemployment to go down in the next months. I see a good chance for USD/ZAR to go down even further.