- USD/ZAR rebounds, looks for more upside amid USD’s bounce.
- The spot set for a triangle breakout on the 1D chart, as it probes 100-DMA.
- 21-DMA is the level to beat for the bears but the RSI remains bullish.
Having found strong support near 14.20 once again, USD/ZAR is attempting a rebound towards 14.50.
This comes as the US dollar tries to find its feet amid a risk-off market profile, as the Delta covid variant concerns and China’s likely slowdown in the economic recovery weigh on the market mood.
From a near-term technical perspective, the cross is looking to recapture the 100-Daily Moving Average (DMA) at 14.37 on a sustained basis, as it tries to extend its recovery from the rising trendline support at 14.22. At that level, the bullish 21-DMA coincides.
On rejection at the 100-DMA barrier, the abovementioned supported could be retested. A symmetrical triangle breakdown will materialize on a daily closing below 14.22.
The downward-sloping 50-DMA cap at 14.03 could then come to the rescue of the bulls.
USD/ZAR daily chart
However, with the 14-day Relative Strength Index (RSI) pointing north above the midline, the bulls are likely to extend their control going forward.
Acceptance above the 100-DMA could threaten the triangle resistance at 14.43, above which the buyers will aim for the July 2 high at 14.51, as it would lead to an upside breakout.
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. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
EUR/USD treads water just above 1.0400 post-US data
Another sign of the good health of the US economy came in response to firm flash US Manufacturing and Services PMIs, which in turn reinforced further the already strong performance of the US Dollar, relegating EUR/USD to the 1.0400 neighbourhood on Friday.
GBP/USD remains depressed near 1.2520 on stronger Dollar
Poor results from the UK docket kept the British pound on the back foot on Thursday, hovering around the low-1.2500s in a context of generalized weakness in the risk-linked galaxy vs. another outstanding day in the Greenback.
Gold keeps the bid bias unchanged near $2,700
Persistent safe haven demand continues to prop up the march north in Gold prices so far on Friday, hitting new two-week tops past the key $2,700 mark per troy ounce despite extra strength in the Greenback and mixed US yields.
Geopolitics back on the radar
Rising tensions between Russia and Ukraine caused renewed unease in the markets this week. Putin signed an amendment to Russian nuclear doctrine, which allows Russia to use nuclear weapons for retaliating against strikes carried out with conventional weapons.
Eurozone PMI sounds the alarm about growth once more
The composite PMI dropped from 50 to 48.1, once more stressing growth concerns for the eurozone. Hard data has actually come in better than expected recently – so ahead of the December meeting, the ECB has to figure out whether this is the PMI crying wolf or whether it should take this signal seriously. We think it’s the latter.
Best Forex Brokers with Low Spreads
VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.