South African Rand weakened sharply on Wednesday following the latest political scandal called “Farmgate”. President Ramaphosa is alleged to have covered up a $4 million theft from his Phala Phala farm in the north east of the country in 2020. The independent panel appointed by parliament to investigate this issue has recommended a full investigation as it believes Ramaphosa may have broken anti-corruption laws and violated the constitution which may lead to removal from his office. USDZAR pair rose over 4.0% during today's session, however buyers struggle to stay above the earlier broken upward trendline and 50 SMA (green line). Slightly higher lies another major resistance in the form of 78.6% Fibonacci retracement of the last downward correction. As long as price sits below, another downward impulse towards major support at 17.05 may be launched.
USDZAR, D1 interval. Source: xStation5
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