USD/ZAR 1H Chart: Two channels prevail
The US Dollar is currently trading in a long-term channel up against the South African Rand. The pair reached a 2017 high of 14.5422 on November 13, breached the previously prevailing ascending channel (drawn with dashed lines) and subsequently initiated a new wave south.
If looking at the junior pattern, the Greenback should test its upper line circa 13.85. However, the 55– and 200-hour SMAs which have limited the pair for the past two weeks are located nearby.
Even if the pair edges higher, the pressure of the monthly PP, the 200-hour SMA and the weekly S1 near the 13.90 mark is likely to reverse the pair back down.
Meanwhile, the bottom boundary of the senior channel is located circa 131.10. The US Dollar could push for this mark during the following two weeks.
If looking at the junior pattern, the Greenback should test its upper line circa 13.85. However, the 55– and 200-hour SMAs which have limited the pair for the past two weeks are located nearby.
Even if the pair edges higher, the pressure of the monthly PP, the 200-hour SMA and the weekly S1 near the 13.90 mark is likely to reverse the pair back down.
Meanwhile, the bottom boundary of the senior channel is located circa 131.10. The US Dollar could push for this mark during the following two weeks.