USD/ZAR 1H Chart: Pair shows weakness
The US Dollar has appreciated substantially against the South African Rand since mid-May. During this time, the pair gained almost 15% and peaked at its highest position in 2018—the psychological 14.00 mark.
This surge has been bounded by an ascending channel. The pair hindered near its bottom boundary on Tuesday, thus pointing to a possible southern breakout. However, the Greenback managed to re-gain its bullish momentum and reach the aforementioned high today.
Long-term technical indicators are located in the overbought area. Thus, it is likely that a new wave down starts next week. This assumption would likewise be strengthened if the rate fails to overcome 14.00 and reach the upper channel line near 14.50 during the following sessions.
This surge has been bounded by an ascending channel. The pair hindered near its bottom boundary on Tuesday, thus pointing to a possible southern breakout. However, the Greenback managed to re-gain its bullish momentum and reach the aforementioned high today.
Long-term technical indicators are located in the overbought area. Thus, it is likely that a new wave down starts next week. This assumption would likewise be strengthened if the rate fails to overcome 14.00 and reach the upper channel line near 14.50 during the following sessions.
Comment:
The US Dollar has retreated downwards against the South African Rand. Namely, in the second part of Tuesday’s trading session the pair plummeted and passed the lower trend line of a dominant ascending channel. Moreover, the trend line was supported by the 55 and 100-hour simple moving averages.
During the recent review it was discovered that there exists a massive scale ascending pattern, whose resistance provided the needed momentum.
Meanwhile, note the revealed medium term descending pattern, who has guided the rate for the past week. Most likely there will occur a junior surge in the borders of the pattern, as soon as the combined resistance of the 55 and 100-hour SMAs together with the PP near the 13.70 mark get passed.
During the recent review it was discovered that there exists a massive scale ascending pattern, whose resistance provided the needed momentum.
Meanwhile, note the revealed medium term descending pattern, who has guided the rate for the past week. Most likely there will occur a junior surge in the borders of the pattern, as soon as the combined resistance of the 55 and 100-hour SMAs together with the PP near the 13.70 mark get passed.
The US Dollar has bounced against a combination of support levels that surround the lower trend line of a dominant ascending channel pattern against the South African Rand.
On Monday the rebound had clearly broken through all close by resistance levels and even confirmed the closest level of significance as a support level. Namely, the 55-hour simple moving average provided the needed support after the currency exchange rate had begun a decline on Friday.
In the near future the currency exchange rate will surge up to the 14.00 mark, where resistance is provided by the high level touched on June 28.