Technical analytics

USDZAR market technical outlook

Daily chart:

Consolidation of the market continues inside lower Bollinger bands (14.5247-14.7300). If solid macro-economic background wasn’t expected today, we could say major events for this asset will take place after the weekend. However today volatility can make some tricks.

H4-chart:

Downward phase of the movement is limited by support at lower Bollinger band (14.5457), where we can expect an upward bounce in direction of PPZ 14.6908.

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H1-chart:

We note an important intraday dynamic support 14.6038, which makes the lower border of flat. If it’s broken the pair can make a shake-out to 14.5457 with following upward ejection (watch the red trajectory).

Expectations:

Main scenario: Decline to 14.5457 and then growth to 14.6800.

Alternative scenario: Flat in the 14.6038-14.6800 range.

Trading recommendations:

  1. Shorts to 14.5457.

  2. Longs from 14.5457 to 14.6800.