Coronavirus cases on the rise in South Africa
Technical Analysis Summary USD/ZAR: Buy
| Indicator | Value | Signal |
| RSI | Neutral | |
| MACD | Buy | |
| MA(200) | Neutral | |
| Fractals | Neutral | |
| Parabolic SAR | Buy | |
| Bollinger Bands | Neutral |
Chart Analysis
On the daily timeframe, USDZAR: D1 moved up from the descending channel. A number of technical analysis indicators formed signals for further growth. We do not rule out a bullish move if USDZAR rises above its latest high: 15.15. This level can be used as an entry point. We can place a stop loss below the Parabolic signal, the last three lower fractals and the annual low: 14.45. After opening a pending order, we move the stop loss to the next fractal low following the Bollinger and Parabolic signals. Thus, we change the potential profit/loss ratio in our favor. After the transaction, the most risk-averse traders can switch to the four-hour chart and set a stop loss, moving it in the direction of the bias. If the price meets the stop loss (14.45) without activating the order (15.15), it is recommended to delete the order: the market sustains internal changes that have not been taken into account.
Fundamental Analysis of -
In the Republic of South Africa (RSA), the number of patients with coronavirus has increased. Will the USDZAR quotes grow ?
An upward movement signifies a weakening of the South African rand against the US dollar. At the end of December, a new mutation of the coronavirus - SARS-CoV-2 (501.V2) was discovered in South Africa. Current vaccines are likely to be ineffective against it. They are now being tested. Meanwhile, the number of people with Covid-19 in South Africa began to increase sharply and has already reached 15 thousand people a day. In early December there were about 4 thousand a day. In total, 1.12 million people fell ill in South Africa and 30.5 thousand died. International rating agencies Fitch and Moody's downgraded South Africa's ratings to a speculative level at the end of November 2020, and S&P did it even earlier.