Technical analytics

USDZAR market technical outlook

USD/ZAR

Daily chart:

Solid overbought conditions probably won’t let the pair to grow further without prior full-scale downward correction. Development potential of pullback is 16.3794 (middle Bollinger band).

H4-chart:

Explicit local bearish divergence is also a sign of shift in power balance in favor of sellers. We expect when they manage to break support 17.3213 that most likely will drive to development of downward momentum in direction 16.3794.

H1-chart:

On hourly chart we can observe a moderate growth of ADX that may allow the quotes to decline today toward supports 17.3213 and 17.1400. A prior pullback may take place in direction of the middle Bollinger band (17.5313-17.5635 area).

Expectations:

So, we expect decline in direction 17.3213 and 17.1400. Prior testing of 17.5313-17.5635 may take place.

Trading recommendations:

Shorts to 17.3213 and 17.1400. Optimal entry area is 17.5313-17.5635.

 

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