The ZAR continues to strengthen against the dollar amid increased uncertainty about the upcoming election and market stimulus talks. Multiple levels of diagonal support has now been breached and a move lower towards the Weekly S2 Pivot @ 16.27 and the Monthly S1 Pivot (also acting as the weekly S3 Pivot ) @ 16.10 can be expected. In the scenario of a pullback resistance might be in the area of 16.55 with a close above invalidating the bearish setup and targeting the Monthly Pivot @ 16.68.


Range Broadening: In light of recent dollar weakness the GBPUSD has broken major horizontal and diagonal resistance and is currently seeing a surge of bullish interest. Targets can be expected at the top of the broadening diagonal channel near the Weekly R2 Pivot @ 1.317. Support can be found around the Monthly Pivot @ 1.300 and should we see a re-test of the breakout this would be a good pullback level, alternatively a pullback to 1.304 can be expected.

GOLD Setup

Possible Gold Breakout: Gold has just managed to pierce the upper diagonal resistance and could be a possible breakout opportunity should we see follow through. In order to realise higher targets of 1955 (Weekly R2 Pivot) price would first need to get above the Weekly R1 Pivot @ 1926. If however we see a pullback or failed breakout the Monthly Pivot @ 1905 could be re-tested with a failed re-test seeing sell-off to the 100 Daily SMA near 1880.