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
Author
Anil Panchal
FXStreet
Anil Panchal has nearly 15 years of experience in tracking financial markets. With a keen interest in macroeconomics, Anil aptly tracks global news/updates and stays well-informed about the global financial moves and their implications.
