Technical analytics

USDZAR market technical outlook

USD/ZAR

Daily chart:

Intensive upward correction of the pair is in progress. It may quite become a full upward reversal as earlier bears failed to break lower Bollinger band.

Thus middle Bollinger band (14.3361) is a key level now: its break will drive to recovery of the quotes towards 14.5295 (watch the red arrow).

But a probability of downward bounce off 14.3361 is in place as well since downtrend was quite strong and might have some residual inertia (black trajectory).

 

H4-chart:

Local upward structure is getting ready to test 14.3361. ADX didn’t gain trending power here, therefore we have a high probability of pullback in direction of the pivot-zone 14.0616-14.1203 (watch the black trajectory). Break of resistance 14.3361 will provide bulls with the space up to the 14.5295 level (watch the red arrow).

 

H1-chart:

On hourly chart buyers managed to break upper Bollinger band (round red mark) creating a signal of the quotes’ growth continuation. At the same time ADX didn’t reach trend zone so far making possible a pullback to the middle band (14.1203), where we have the most optimal buy entry point.

 

Expectations:

Decline to 14.1203 and then new upward momentum in direction 14.3361 with aim at 14.5295.

Trading recommendations:

Longs from 14.1203 to 14.3361 and 14.5295 (extraday).

 

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