Dukascopy Bank Team
Dukascopy Bank SA
USD/ZAR 1H Chart: Falling wedge pattern in sight
The USD/ZAR currency pair reversed north from the lower boundary of the descending triangle pattern (4H time-frame chart) located at 14.52 at the end of October. Currently, the pair is trading at the 14.75 mark.
From a theoretical point of view, it is likely that some upside potential could prevail in the market, and the exchange rate could reach the upper pattern line located circa 15.25 in the nearest future. However, the expected advance might not be immediate, as the rate has to target the resistance level—the monthly PP at 15.00.
Also, note that the currency pair is pressured by the 55-, 100– and 200-hour moving averages. Thus, it is likely that the pair could re-test the lower pattern line in the short run. If the given pattern does not hold, it is likely the pair could target the Fibo 38.20% at 14.06.
ZAR/JPY 1H Chart: Short-term increase expected
The ZAR/JPY exchange rate has been trading within the rising wedge pattern since the beginning of September. Currently, the rate is testing the resistance level formed by the Fibo 23.60% at 7.40.
Given that the currency pair is supported by the 55-, 100– and 200-hour SMAs, it is likely that bulls could prevail in the market, and the pair could reach the upper pattern line located 7.53 in the nearest future. However, the possible increase might not be immediate, as the pair has to surpass the resistance level formed by the monthly R1 at 7.48.
It is unlikely that the exchange rate could surpass the 7.55 mark due to the upper boundary of the long-term descending channel. Also, it is unlikely that bears could prevail, and the rate could drop lower than the psychological level at 7.00.
This overview can be used only for informational purposes. Dukascopy SA is not responsible for any losses arising from any investment based on any recommendation, forecast or other information herein contained.
Recommended Content
Editors’ Picks
EUR/USD edges lower toward 1.0700 post-US PCE
EUR/USD stays under modest bearish pressure but manages to hold above 1.0700 in the American session on Friday. The US Dollar (USD) gathers strength against its rivals after the stronger-than-forecast PCE inflation data, not allowing the pair to gain traction.
GBP/USD retreats to 1.2500 on renewed USD strength
GBP/USD lost its traction and turned negative on the day near 1.2500. Following the stronger-than-expected PCE inflation readings from the US, the USD stays resilient and makes it difficult for the pair to gather recovery momentum.
Gold struggles to hold above $2,350 following US inflation
Gold turned south and declined toward $2,340, erasing a large portion of its daily gains, as the USD benefited from PCE inflation data. The benchmark 10-year US yield, however, stays in negative territory and helps XAU/USD limit its losses.
Bitcoin Weekly Forecast: BTC’s next breakout could propel it to $80,000 Premium
Bitcoin’s recent price consolidation could be nearing its end as technical indicators and on-chain metrics suggest a potential upward breakout. However, this move would not be straightforward and could punish impatient investors.
Week ahead – Hawkish risk as Fed and NFP on tap, Eurozone data eyed too
Fed meets on Wednesday as US inflation stays elevated. Will Friday’s jobs report bring relief or more angst for the markets? Eurozone flash GDP and CPI numbers in focus for the Euro.