Technical analytics

USDZAR market technical outlook

Daily chart:

Currency pair has probed dynamic support 14.6000 at lower Bollinger band, that probably will drive to pullback to the middle band (14.7587). ADX readings correspond to flat.

H4-chart:

Locally an upward bounce off support 14.6018 can be well seen as well. At the same time ADX activity is also present here, therefore upward correction may get stiff resistances at 14.7043, 14.7581, 14.8102.

H1-chart:

On hourly chart the pair switched to downward phase triggered by resistance 14.6750 (upper Bollinger band). Here we can observe growth of ADX readings, therefore at any moment we might get a spike of bulls’ activity and attempt to break 14.6750. Potential target of buyers is 14.7587.

Expectations:

So, we expect a pullback in direction 14.6176 and then continuation of growth in direction 14.7587 (extraday).

Trading recommendations:

Longs towards 14.6176 (during decline in direction 14.6176).