USD/ZAR 1H Chart: Downside potential
The US Dollar has been depreciating against the South African Rand gradually since the beginning of August. This movement has been bounded in a falling wedge.
During this week the pair has been trying to breach the resistance level formed by the weekly R1 at 14.54. Given that the exchange rate is being pressured by the 55-, 100– and 200-hour SMAs, it is expected that the rate targets the lower wedge line located circa 13.85 within the following sessions. Technical indicators also support bearish scenario.
If given wedge does not hold, a breakout south might occur. Potential downside target is the Fibonacci 50.00% retracement at 13.58.
During this week the pair has been trying to breach the resistance level formed by the weekly R1 at 14.54. Given that the exchange rate is being pressured by the 55-, 100– and 200-hour SMAs, it is expected that the rate targets the lower wedge line located circa 13.85 within the following sessions. Technical indicators also support bearish scenario.
If given wedge does not hold, a breakout south might occur. Potential downside target is the Fibonacci 50.00% retracement at 13.58.