Technical analytics

USDZAR market technical outlook

Daily chart:

Currency pair continues to stay in the range of Bollinger bands (14.5241-15.0831). There are no signs of leaving this channel.

H4-chart:

We note an important local support at the area of lower Bollinger band (14.6686), where we can distinguish typical “tails” of bullish bars suggesting probable gaining positions by buyers.

H1-chart:

Mid-term market has the shape of inverted Head-and-Shoulders pattern suggesting high probability of full upward reversal from current levels (watch the dark arrow).

In case of break of support 14.7614 the pair might slide to 14.6686 again.

Expectations:

Main scenario: Bounce off 14.7614 to 14.8407.

Alternative scenario: Break of support 14.7614 to 14.6686.

Trading recommendations:

  1. Longs from 14.7614 to 14.8407.

  2. Shorts with count on break of 14.7614 to 14.6686.

  3. Longs from 14.6686 to 14.8407.

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