USD/ZAR Price Analysis: Below 100-day SMA inside short-term falling wedge

USD/ZAR remains on the back foot near three-month low.
Sustained trading below key SMA keeps the sellers hopeful.
Bullish chart formation, oversold RSI conditions suggest intermediate pullback in prices.

Anil Panchal FXStreet

While failing to extend the day-start pullback to 16.85, USD/ZAR drops to 16.80 amid the initial Asian session on Monday. As a result, the quote seesaws around the lowest since March 18 by the press time.

The pair portrays a bullish technical pattern on the daily chart amid oversold RSI conditions. However, a sustained trading below 100-day SMA favors the sellers.

Against this backdrop, the bears may aim for a descending trend line from May 21, currently around 16.58, as immediate support during the further downside.

Though, oversold RSI conditions might restrict the pair’s additional declines, if not then 16.00 and 200-day SMA level of 15.80 could lure the bears.

On the upside, a 100-day SMA level of 16.94 may offer immediate resistance to the pair ahead of the bullish formation’s upper line, at 17.05 now.

Should there be a clear break above 17.05, the bullish pattern gets confirmed, which in turn could the theoretical run-up towards 19.00. However, May 29 high of 17.67 and April 30 low of 18.00 could offer intermediate halts during the rise.

USD/ZAR daily chart

Trend: Pullback expected

Additional important levels

Overview
Today last price	16.7745
Today Daily Change	-0.0423
Today Daily Change %	-0.25%
Today daily open	16.8168

Trends
Daily SMA20	17.744
Daily SMA50	18.2252
Daily SMA100	16.8927
Daily SMA200	15.7882

Levels
Previous Daily High	16.9388
Previous Daily Low	16.7164
Previous Weekly High	17.6219
Previous Weekly Low	16.7164
Previous Monthly High	18.9592
Previous Monthly Low	17.2921
Daily Fibonacci 38.2%	16.8013
Daily Fibonacci 61.8%	16.8538
Daily Pivot Point S1	16.7092
Daily Pivot Point S2	16.6016
Daily Pivot Point S3	16.4868
Daily Pivot Point R1	16.9316
Daily Pivot Point R2	17.0464
Daily Pivot Point R3	17.154

Author

Anil Panchal

FXStreet

Anil Panchal has nearly 15 years of experience in tracking financial markets. With a keen interest in macroeconomics, Anil aptly tracks global news/updates and stays well-informed about the global financial moves and their implications.

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