ZMK: Approaching Key Resistance

April 2008 | Market Strategy

The Zambian kwacha has appreciated by 7.5% since breaching key resistance at ZMK3,675/US$ on March 10 2008, at one point trading at ZMK3,420/US$ on April 16 2008. The currency is now approaching 14-year trendline resistance at ZMK3,400/US$ in line with our upbeat view over the past six weeks. While we believe the currency will face stiff resistance from this line in the short term, in the medium term we believe the kwacha will move through. Such a move sets up further gains towards the next level of resistance at ZMK3,050/US$.

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