USD/ZAR Price Analysis: Pokes rising wedge resistance below 17.65 key upside barrier
|- USD/ZAR seesaws in a choppy range between 17.42 and 17.50.
- Bullish MACD signals the pair’s further upside to the confluence of 200-bar SMA and 50% Fibonacci retracement.
- A downside break below 17.20 will confirm the bearish technical pattern.
USD/ZAR takes rounds to 17.45 during the early Asian session on Friday. The pair probes the two-week-old ascending trend line while keeping the latest range inside 17.42/50 area. Also likely to exert downside pressure on the quote could be 200-bar SMA and 50% Fibonacci retracement level of the pair’s declines from May 04 to June 10.
However, bullish MACD suggests the pair’s immediate upside, which in turn could defy the said chart formation with a break of 17.55 level. Even so, 17.65 level comprising the key SMA and Fibonacci retracement, will stop the quote’s additional rise.
If at all the bulls manage to cross 17.65, it’s run-up towards 18.00 can’t be ruled out.
On the flip side, an ascending trend from June 10, at 17.20 now, could restrict the pair’s immediate declines.
Though, sustained weakness below 17.20 will confirm the bearish chart play and indicate the pair’s fall to challenge the monthly low around 16.34.
USD/ZAR four-hour chart
Trend: Pullback expected
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