ZAR: Rand Inches Higher, Consolidates Weekly Gain

• RES 4: 1.4676 2.0% 10-dma envelope
• RES 3: 1.4539 3.382 proj of the Oct 17 - Nov 1 - 6 price swing
• RES 2: 1.4508 3.236 proj of the Oct 17 - Nov 1 - 6 price swing
• RES 1: 1.4467 High Dec 19 
• PRICE: 1.4360 @ 08:04 GMT Jan 8 
• SUP 1: 1.4326/4280 20-day EMA / Low Jan 6  
• SUP 2: 1.4232 Low Dec 17 
• SUP 3: 1.4163 50-day EMA
• SUP 4: 1.4011 Low Dec 5

USDCAD traded lower Monday. The trend set-up remains bullish and the move down is considered corrective. The latest pause in the uptrend appears to be a flag formation - a bullish continuation signal. Note too that MA studies are in a bull-mode position, highlighting a dominant uptrend. Sights are on 1.4508 next, a Fibonacci projection level. 1.4326, the 20-day EMA, has been pierced. A clear break of the EMA would open 1.4163, the 50-day EMA.

• RES 4: 0.6471 High Dec 9
• RES 3: 0.6388 50-day EMA               
• RES 2: 0.6341 High Dec 18   
• RES 1: 0.6269/0.6302 20-day EMA / High Jan 6
• PRICE: 0.6227 @ 08:00 GMT Jan 8 
• SUP 1: 0.6179 Low Dec 31 
• SUP 3: 0.6158 1.236 proj of the Sep 30 - Nov 6 - 7 price swing
• SUP 3: 0.6100 Round number support 
• SUP 4: 0.6045 1.500 proj of the Sep 30 - Nov 6 - 7 price swing

A bearish trend condition in AUDUSD remains intact and the pair has pulled back from Monday’s high. Recent weakness maintains the price sequence of lower lows and lower highs. Note that MA studies are in a bear-mode position too, highlighting a dominant downtrend. Scope is seen for an extension towards 0.6158 next, a Fibonacci projection. Initial firm resistance to monitor is 0.6269, 20-day EMA. It has been pierced. The 50-day EMA is at 0.6388.

SFRZ6/U7 paper paid 6.5 on ~6.3K, initially taken bid over with a further ~3.2K trading since. Market left 6.0/6.5 last.