USD/ZAR Price Analysis: Awaits acceptance above 100-DMA to extend the rebound

USD/ZAR rebounds, looks for more upside amid USD’s bounce.
The spot set for a triangle breakout on the 1D chart, as it probes 100-DMA.
21-DMA is the level to beat for the bears but the RSI remains bullish.

Dhwani Mehta FXStreet

Having found strong support near 14.20 once again, USD/ZAR is attempting a rebound towards 14.50.

This comes as the US dollar tries to find its feet amid a risk-off market profile, as the Delta covid variant concerns and China’s likely slowdown in the economic recovery weigh on the market mood.

From a near-term technical perspective, the cross is looking to recapture the 100-Daily Moving Average (DMA) at 14.37 on a sustained basis, as it tries to extend its recovery from the rising trendline support at 14.22. At that level, the bullish 21-DMA coincides.

On rejection at the 100-DMA barrier, the abovementioned supported could be retested. A symmetrical triangle breakdown will materialize on a daily closing below 14.22.

The downward-sloping 50-DMA cap at 14.03 could then come to the rescue of the bulls.

USD/ZAR daily chart

However, with the 14-day Relative Strength Index (RSI) pointing north above the midline, the bulls are likely to extend their control going forward.

Acceptance above the 100-DMA could threaten the triangle resistance at 14.43, above which the buyers will aim for the July 2 high at 14.51, as it would lead to an upside breakout.

Author

Dhwani Mehta

FXStreet

Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.

GBP/USD loses momentum, flirts with 1.3200

GBP/USD is struggling to maintain its positive bias on Thursday, retreating toward the 1.3200 region in response to the pick in the buying interest around the Greenback. That said, Cable remains under scrutiny as cautious market sentiment keeps investors focused on the US-Iran conflict and political effervescence in the UK.

EUR/USD trims gains, challenges 1.1400

EUR/USD now gives away part of its earlier advance, receding toward the 1.1400 contention zone on Thursday. Meanwhile, the pair’s recovery comes amid extra losses in the US Dollar, at the time when while investors continue to monitor developments in the Middle East and sentiment surrounding global technology stocks.

Gold remains bid and close to $4,100

Gold accelerates its recovery and approaches the key $4,000 mark per troy ounce at the end of the week, adding to Thursday’s advance. However, expectations for a hawkish Fed remain steady and keep the yellow metal’s potential upside contained.

Crypto Today: Bitcoin at $60,000, Ethereum at $1,500, and XRP at $1 face a make-or-break test

Bitcoin (BTC), Ethereum (ETH), and Ripple (XRP) are trading in the red on Friday after three consecutive days of losses, testing their respective make-or-break support levels.

Week ahead – NFP report to challenge Dollar strength and the hawkish Fed

Dollar strength dominates markets, as the hawkish Fed overshadows geopolitics and lower oil prices. NFP week could drive September Fed hike expectations and boost market volatility. The euro lacks fresh bullish catalysts, all eyes on the preliminary inflation report and the ECB Forum.

Regime change: Inside Kevin Warsh's first move to make the Fed unreadable on purpose

The rate did not move. That was the least interesting thing about Kevin Warsh's first meeting in charge of the Fed. The FOMC held its benchmark at 3.50%-3.75% for the fourth straight meeting, exactly as priced, and then the new chair used his first press conference to dismantle the machinery the market has leaned on for a decade.