USD/ZAR Price Analysis: Overbought RSI tests bulls above $16.00
|- USD/ZAR retreats from intraday high, stays around yearly top.
- 61.8% Fibonacci retracement limits immediate downside, July 2020 lows challenge bulls.
- RSI conditions challenge further upside but bullish trend remains intact.
USD/ZAR stays firmer around $16.20, despite the recent pullback from intraday high, amid early Tuesday morning in Europe.
In doing so, the South African currency (ZAR) remains on the back foot around the lowest levels in a year, flashed on Friday, while staying above 61.8% Fibonacci retracement (Fibo.) level of August 2020 to June 2021 fall, around $16.10.
However, the overbought RSI line hints at the quote’s pullback move from a horizontal area comprising July 2020 lows, near $16.35-40.
Adding to the upside filters is the October 2020 peak of $16.75 and the $17.00 threshold.
On the contrary, the pair’s pullback below the key Fibo. level support of $16.10 will need validation from the $16.00 round figure to aim for a late November 2020 swing high near $15.70.
It should be noted that the USD/ZAR keeps the bullish trend until the quote stays above August 2021 top near $15.40.
USD/ZAR: Daily chart
Trend: Further upside expected
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.