USD/ZAR Outlook: Bears are taking a breather above 14.00 support; negative outlook below 200DMA

ANALYSIS | 07/02/2019 14:31:06 GMT

USDZAR

The pair is consolidating above psychological 14.00 support, from where four-day fall faced headwinds. Break below higher base at 14.13 was bullish signal, reinforced by optimism over global trade salutation and signals of Fed rate cut that kept the greenback under pressure. Daily studies maintain strong bearish momentum, with multiple bear-crosses of daily MA's which are in bearish configuration, supporting scenario of break through 14.00 handle (reinforced by Fibo 61.8% of 13.23/15.17 ascend at 13.97) and attack at key support at 13.86 (11 Apr low). Strong barriers at 14.22/25 (weekly cloud top / 200DMA) need to limit upticks and keep bears intact. Conversely, sustained break above 200DMA would put bears on hold for stronger correction.

Res: 14.22; 14.25; 14.32; 14.40
Sup: 14.03; 13.97; 13.92; 13.86

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