Technical analytics

USDZAR market technical outlook

USD/ZAR

Daily chart:

Markets opened with upward gap allowing to expect growth to the area of upper Bollinger band (18.3762). At the same time we have to note tangible overbought conditions, that can make the quotes to go down for filling the gap at 17.7800. 

H4-chart:

Local ADX indicator resides in a trend zone that also speaks for upward scenario today.

H1-chart:

On hourly chart 18.1520 level (upper Bollinger band) might prove a strong resistance - here the bullish pressure of ADX is absent. The probable target of correction is middle Bollinger band (17.7889).

Expectations:

Main scenario: Growth to 18.1520 and then downward reversal to 17.7889.

Alternative scenario: Break above 18.1520 and growth to 18.3762.

Trading recommendations:

  1. Longs to 18.1520 and 18.3762.

  2. Shorts from 18.1520 (only in case of getting a signal at this area).