fxs_header_sponsor_anchor

News

USD/ZAR Price Analysis: South African Rand bounces off 10-DMA to aim for fresh record high

  • USD/ZAR steadies above short-term moving average, pauses the previous pullback from all-time high.
  • RSI conditions suggest pullback in prices but previous resistance line from October 2022 holds gate for South African Rand buyers.
  • Week-long resistance line restricts USD/ZAR run-up towards 20.00.

USD/ZAR picks up bids to reverse the previous day’s pullback from the all-time high as buyers prod the 19.26 level heading into Tuesday’s European session.

In doing so, the South African Rand (ZAR) reverses from the 10-DMA. Given the bullish MACD signals the pair is likely to extend the latest recovery towards an upward-sloping resistance line connecting the latest peaks, which are also the record high, close to 19.53.

However, the nearly overbought RSI conditions, as well as the oscillator’s inability to march the higher-high in prices, signals another pullback from the stated resistance line.

Failing to do so can gradually propel the USD/ZAR prices toward the 20.00 round figure.

On the contrary, a downside break of the 10-DMA level of around 19.20 can quickly drag the South African Rand price to the 19.00 round figure.

Though, an upward-sloping previous resistance line from October 2022, now the key support near 18.80, holds the gate for the ZAR bulls afterward.

Overall, USD/ZAR remains on the bull’s radar but the upside room appears limited.

USD/ZAR: Daily chart

Trend: Further upside expected

 

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.


RELATED CONTENT

Loading ...



Copyright © 2024 FOREXSTREET S.L., All rights reserved.