USD/ZAR Price Analysis: Bounces from one-month lows despite an impending bear cross
- USD/ZAR has recovered from four-week lows, still, bias remains bearish.
- The 50- and 100-day SMAs are about to produce a bearish crossover for first since December.
USD/ZAR is trading at 16.8752 at press time, representing a 0.34% gain on the day, having hit a one-month low of 16.7936 on Thursday,
The bounce from four-week lows could be extended to the descending 5- and 10-day simple moving averages, currently at 16.94 and 17.03 as both the hourly chart RSI and the MACD histogram are reporting bullish signals.
However, the daily chart MACD, an indicator used to gauge trend strength and trend changes, has crossed below zero in favor of the bears. In addition, the 50-day SMA is about to cross below the 100-day SMA for the first time since December 2019.
As such, the pair may have a tough time crossing the 5- and 10-day SMA hurdles. A rejection at one of these MAs would reinforce the bearish bias and will likely yield a drop to 16.50. The immediate bearish bias would be invalidated if the pair finds acceptance above the 10-day SMA.
Daily chart
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Trend: Bearish
Technical levels
Author
Omkar Godbole
FXStreet Contributor
Omkar Godbole, editor and analyst, joined FXStreet after four years as a research analyst at several Indian brokerage companies.
