It looks as if the Rand may retrace to 7.30 before this correction comes to an end. This is a correction in the longer term strengthening trend of the Rand, and it coincides with the correction in share markets.
The setup on the Aussie dollar confirms the setup on the rand. The Aussie Dollar completed the "head and shoulders reversal pattern" to target the support level at 0.935. We expect the Aussie Dollar to find support there and resume the strengthening trend. The 0.935 level on the Aussie translates to 7.28 on the Rand/USD.
We were a bit impatient in our last blog. It looks as if the All Share is on it's way to 29 750 after all! This correction is a buying opportunity for investors with cash. This is the first decent correction since August and should be viewed as a positive occurrence, as a stable bull market needs to correct regularly.
