The US Dollar has been depreciating against the South African Rand since the beginning of July. This movement has been bounded in the falling wedge pattern.
As apparent on the chart, the USD/ZAR currency pair is testing the upper pattern line at 13.94. If the given pattern does not hold, it is likely, that a breakout north could occur in the nearest future. A possible upside target is the resistance level formed by a combination of the Fibonacci 38.20% retracement and the weekly R1 at 14.06.
However, note, that the exchange rate is pressured by the 55-, 100– and 200-hour SMAs, currently located circa 13.90. Thus, the rate could breach the given pattern south and reach the monthly S1 located at the 13.74 mark.
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.