It's time to sell the Rand
The Rand has made a strong recovery against the major currency pairs over the past month.
And faces several headwinds this week with the Mid-Term Budget Speech due tomorrow.
There's also the Moody's decision and a slew of important data points from the US, Europe and the UK.
These events have the potential to see the Rand lose 50c or more in the coming weeks against the USD.
Look at the chart below, highlighting the important support levels the Rand is up against.
We could see some continued strength today and tomorrow, before selling pressure pushes the Rand back to R15.00 against the USD.
Buy the rumour, sell the fact - and profit from ZAR weakness
This is a typical case of buy the rumour, sell the fact at play, as traders’ price in a favourable outcome from the mid-term budget speech and Moody’s. Once the positives are out, they look at the next batch of market moving news that can impact forecasts.
In the short term, the Rand has run too much and it’s time to start selling it to get funds offshore.
Short term traders can take geared positions and profit as the Rand weakens against the USD.
Sell the Rand against the USD below R14.55 and profit as it weakens to R15.00 and higher. [Remember: This means you will be going long the USD/ZAR currency pair at R14.55 or better.]
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