USD/ZAR Price Analysis: South African Rand eases from record high within longer-term bullish channel


  • USD/ZAR retreats from all-time high to pare the biggest daily gains in a year amid overbought RSI.
  • 18-month-old rising trend channel keeps South African Rand sellers hopeful.
  • Previous resistance from March restricts immediate downside ahead of 10-DMA.

USD/ZAR takes offers to refresh intraday low as it steps back from the all-time high marked the previous day. In doing so, the South African Rand (ZAR) pair drops 0.25% intraday to 19.75 heading into Friday’s European session.

That said, the USD/ZAR pair marked the biggest daily gains in a year the previous day as it crossed an upward-sloping resistance line from March, now immediate support near 19.70. However, the overbought RSI (14) allowed South African Rand traders to lick their wounds within a 1.5-year-old rising trend channel bullish formation.

Hence, a two-month-old resistance-turned-support line, around 19.70 restricts the immediate downside of the USD/ZAR pair ahead of highlighting the tops marked earlier in the month around 19.52 and 19.51.

In a case where the South African Rand recovers beyond 19.51, the 10-DMA and an upward-sloping trend line from October 2022, close to 19.33 and 18.80 in that order, could challenge the pair sellers.

On the flip side, the 20.00 psychological magnet lures the USD/ZAR buyers ahead of the stated channel’s top line surrounding 20.12.

Overall, the South African Rand remains on the bear’s radar despite the latest pullback.

USD/ZAR: Daily chart

Trend: Pullback expected 

Additional important levels

Overview
Today last price 19.7426
Today Daily Change -0.0612
Today Daily Change % -0.31%
Today daily open 19.8038
 
Trends
Daily SMA20 18.9081
Daily SMA50 18.4809
Daily SMA100 18.1023
Daily SMA200 17.8135
 
Levels
Previous Daily High 19.8326
Previous Daily Low 19.2395
Previous Weekly High 19.525
Previous Weekly Low 18.9943
Previous Monthly High 18.5399
Previous Monthly Low 17.7526
Daily Fibonacci 38.2% 19.606
Daily Fibonacci 61.8% 19.4661
Daily Pivot Point S1 19.418
Daily Pivot Point S2 19.0323
Daily Pivot Point S3 18.825
Daily Pivot Point R1 20.011
Daily Pivot Point R2 20.2183
Daily Pivot Point R3 20.604

 

 

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