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.
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.
