USD / ZAR sits below the key fibo and 50-dma level at 18.04. TD Securities strategists are opening up a long position on sharp rate cuts and negative prospects.
“USD / ZAR ventures into the lower half of the RSI range, towards overselling. The pair is just below the 18.04 key fibo level and the 50dma. We expect a higher rebound. ”
“We are opening a long USDZAR position in our model portfolio, with creation at 17.92 and a target of 18.45. We have set a stop at 5:65 p.m. ”
“We expect real GDP to contract by 8.5% in 2020. However, the SARB forecasts a contraction of 6.1% this year. It is very likely that there will be a further downward revision at today’s SARB MPC meeting, while recognizing the strong disinflationary forces, which will justify a reduction of 50 bp, if not more, today. hui. “