USD/ZAR Price Analysis: Corrective bounce running out of steam

USD/ZAR is looking to dive out of a bullish channel on the hourly chart.
A breakdown would open the doors for a re-test of recent lows.

Omkar Godbole FXStreet Contributor

USD/ZAR's recovery from an eight-month low of 15.2092 reached Monday is at risk of being aborted as the pair is teasing a rising channel breakdown on the hourly chart.

At the time of writing, the pair is flirting with the lower end of the ascending channel created in the past 48 hours or so. A breakdown, if confirmed, would imply an end of the corrective bounce and shift risk in favor of a re-test of 15.2029.

The hourly chart MACD histogram has already crossed into a bearish territory below zero. Further, the 14-hour relative strength index has fallen back below 50.

As such, the ascending channel breakdown cannot be ruled out.

Tuesday's high of 15.7043 is the level to beat for the bulls. A daily close above that level would shift the focus to the Sept. 18 low of 16.0836.

Hourly chart

Trend: Bearish

Technical levels

USD/ZAR

Overview
Today last price	15.5617
Today Daily Change	-0.0696
Today Daily Change %	-0.45
Today daily open	15.6368

Trends
Daily SMA20	16.1716
Daily SMA50	16.4787
Daily SMA100	16.7481
Daily SMA200	16.9689

Levels
Previous Daily High	15.7103
Previous Daily Low	15.3433
Previous Weekly High	16.4504
Previous Weekly Low	15.5777
Previous Monthly High	16.8003
Previous Monthly Low	16.0915
Daily Fibonacci 38.2%	15.5701
Daily Fibonacci 61.8%	15.4835
Daily Pivot Point S1	15.4166
Daily Pivot Point S2	15.1964
Daily Pivot Point S3	15.0496
Daily Pivot Point R1	15.7837
Daily Pivot Point R2	15.9305
Daily Pivot Point R3	16.1507

Author

Omkar Godbole

FXStreet Contributor

Omkar Godbole, editor and analyst, joined FXStreet after four years as a research analyst at several Indian brokerage companies.

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