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USDZAR Forecast – December-11-2023

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FxNews – During the trading session on December 23, the USDZAR currency pair successfully broke above the 19.0 resistance level. On Friday, the pair approached the 19.1 Fibonacci support level for a test. However, the USDZAR bulls were unable to push past this area. This leads to the price currently fluctuating around the median line of the bullish flag pattern. Given the bullish trend direction, we can anticipate further increases.

The key factor underpinning this bullish trend is the 19.0 support zone. If this support remains intact, the next target for a bullish surge could be the 18.31 Fibonacci support.

USDZAR Technical Analysis - December-11-2023

USDZAR Technical Analysis – 4H Chart

USDZAR Technical Analysis: Bearish Scenario

On the flip side, if the price were to drop below the 19.0 support area, it would likely lead the USDZAR price to challenge the lower band of the bullish flag. This potential shift could significantly alter the current market dynamics, making it a crucial point for traders to watch.

Overview of South African Stock Market Trends

Bloomberg – At the start of the week, the South African stock market demonstrated a slight downturn, with the JSE All Share Index hovering around 73,440 on Monday. This movement continues the decline seen in the previous week. Investors are bracing for a week filled with significant economic data releases and policy decisions from key global central banks, such as the Federal Reserve and the European Central Bank (ECB).

A crucial point of interest for the local market will be the release of South Africa’s consumer inflation data for November, scheduled for Wednesday. This data is vital as it provides insights into the country’s economic health and can influence future monetary policy decisions. In terms of individual stocks, Telkom experienced the most significant drop, with its shares falling by 4.1%. Other notable declines included Sasol (-3.2%), Anglo-American (-2.9%), and Pick n Pay (-2.9%). On a more positive note, companies such as Montauk Renewables, Karoo, and Bytes showed robust performance, each registering a gain of over 3%.

The stock market is a barometer of a country’s economic confidence and health. The early-week decline in the South African market may reflect investor caution ahead of key financial data and policy announcements. However, the gains in specific stocks, particularly in the renewable energy sector, suggest areas of growth and investor confidence in these industries.

  • 11 December 2023
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