Technical analysis: rand defies political upheaval
THE rand continues to defy the odds and resist weakening against the dollar in the face of ongoing negative political and economic factors. Its chart is pointing to more rand strength to come.
The rand continues to make lower highs and lower lows (dollar weakness).
This has indicated a strong trend for the rand over the past two months.
The currency is pointing to a minimum target of R12.48 to the dollar.
This target is based on a chart pattern in the shape of a triangle.
Therefore, traders should be going long (buying) the rand, particularly on one or two-day pullbacks in the price.
However, a closing above R13.22 to the greenback would negate the above analysis and see the rand weaken.