USD/ZAR Price Analysis: Wednesday's Doji cools down recovery hopes
|- USD/ZAR prints mild losses after bouncing off late-February lows in early week.
- Trend reversal suggesting candlestick formation joins bearish MACD to favor sellers.
- Previous support stretched from July 21, falling trend line from late-September add to the upside barriers.
USD/ZAR wavers around 15.64 during early Thursday. The pair dropped the lowest since late-February on Monday while extending the downside break of a multi-day-old support line, now resistance, on November 05.
The following pullback, marked Tuesday, couldn’t get credits yesterday as USD/ZAR traders jostled around 15.63/65. While the same portrayed a Doji candlestick on the daily chart, bearish MACD and a sustained trend line break back the bears.
As a result, the recent low near 15.52 holds the key to the pair’s fresh downside towards 15.34 and the multi-day bottom flashed earlier in the week close to 15.21. However, the 15.00 round-figure may probe any further downside.
Meanwhile, bulls need to cross the previous support around 15.85 to recover some of the losses. Though, the 16.00 threshold and a falling resistance line from September 25, at 16.25 could challenge the USD/ZAR buyers afterward.
Should there be a clear upside past-16.25, the monthly high near 16.45, followed by late-October tops near 16.50, will act as upside hurdles.
USD/ZAR daily chart
Trend: Bearish
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.