The South African Rand lost around 27% against the US dollar, skyrocketing from a low of 15.20 to an all-time high of 19.34.
USDZAR is currently appreciating again, following a minor bearish correction.
The weekly chart above illustrates the correction to the bottom channel trendline and a potential upside target to the channel trendline top.
In case prices receive a rejection at the trendline top, we can expect the ascending (red) trendline to be the next support.
As seen in the above chart, a potential test at the top of the range coincides with the channel’s top trendline.
However, we might see a false breakout recording a new high as the intersection level indicates.
Once the double top pattern is completed we can expect prices to experience a correction or even a pullback.
The correction could take us to as low as the17.00 round support, whereas the pullback points to mid 18.00 levels.
Overall, the monthly chart hints at more upside anyway, which can be triggered once either the correction or the pullback are completed. The upside could get us to the 21.00 handle.