Technical analytics

USDZAR market technical outlook

Daily chart:

Currency pair continues to form support at the area of lower Bollinger band (14.4888-14.6046). At the same time we need to note, that tone of this accumulation is rather bearish - ADX grows, therefore during move of the indicator to trending zone, we might expect development of further mid-term downward momentum in direction 14.1284. 

H4-chart:

We note local dynamic resistance from where traders most likely will continue to sell out the pair - it’s middle Bollinger band (14.7119). The closest target for bears is support 14.5638.

H1-chart:

On hourly chart the pair also faces significant resistance at 14.6505 (upper Bollinger band). It looks like today we’ll get continuation of flat between this level and support 14.5638.

Expectations:

Main scenario: Flat in the 14.5638-14.6505 range.

Alternative scenario: Upward movement to the 14.7119 level and following downward reversal.

Trading recommendations:

Shorts from 14.6505 and 14.7119.

 

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