USD/ZAR Price Analysis: Overbought RSI tests bulls above $16.00

USD/ZAR retreats from intraday high, stays around yearly top.
61.8% Fibonacci retracement limits immediate downside, July 2020 lows challenge bulls.
RSI conditions challenge further upside but bullish trend remains intact.

Anil Panchal FXStreet

USD/ZAR stays firmer around $16.20, despite the recent pullback from intraday high, amid early Tuesday morning in Europe.

In doing so, the South African currency (ZAR) remains on the back foot around the lowest levels in a year, flashed on Friday, while staying above 61.8% Fibonacci retracement (Fibo.) level of August 2020 to June 2021 fall, around $16.10.

However, the overbought RSI line hints at the quote’s pullback move from a horizontal area comprising July 2020 lows, near $16.35-40.

Adding to the upside filters is the October 2020 peak of $16.75 and the $17.00 threshold.

On the contrary, the pair’s pullback below the key Fibo. level support of $16.10 will need validation from the $16.00 round figure to aim for a late November 2020 swing high near $15.70.

It should be noted that the USD/ZAR keeps the bullish trend until the quote stays above August 2021 top near $15.40.

USD/ZAR: Daily chart

Trend: Further upside expected

Additional important levels

Overview
Today last price	16.2008
Today Daily Change	0.0254
Today Daily Change %	0.16%
Today daily open	16.1754

Trends
Daily SMA20	15.5326
Daily SMA50	15.1565
Daily SMA100	14.895
Daily SMA200	14.631

Levels
Previous Daily High	16.2433
Previous Daily Low	16.0724
Previous Weekly High	16.3684
Previous Weekly Low	15.6897
Previous Monthly High	15.3287
Previous Monthly Low	14.352
Daily Fibonacci 38.2%	16.178
Daily Fibonacci 61.8%	16.1377
Daily Pivot Point S1	16.0841
Daily Pivot Point S2	15.9928
Daily Pivot Point S3	15.9132
Daily Pivot Point R1	16.255
Daily Pivot Point R2	16.3346
Daily Pivot Point R3	16.4259

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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