USD/ZAR Price Analysis: Rand looks set to reclaim 19.00 ahead of South Africa GDP

USD/ZAR drops to the lowest levels in two weeks during four-day downtrend.
Bears cheer downside break of 100-SMA, previous support line from mid-May.
200-SMA can prod South African Rand buyers amid oversold RSI conditions.
South Africa Gross Domestic Product appears the key data to watch for clear directions.

Anil Panchal FXStreet

USD/ZAR bears stay in the driver’s seat for the fourth consecutive day after it refreshed an all-time high in the last week. That said, the South African Rand (ZAR) pair drops to the fresh low in a fortnight while taking offers to 19.21 ahead of the South After Gross Domestic Product (GDP) release, scheduled for publishing at 09:30 AM GMT on Tuesday.

Although the GDP data is less likely to allow the USD/ZAR sellers to keep the reins, technical details are favoring further downside of the quote.

That said, a clear break of the 100-SMA and a three-week-old support-turned-resistance adds strength to the bearish bias about the USD/ZAR pair. The same direct the sellers toward the mid-May low surrounding the 19.00 round figure.

However, the oversold RSI conditions appear to challenge the USD/ZAR bears around the 200-SMA level of 18.94.

Following that, an upward-sloping support line from late March, close to 18.62 at the latest, appears the last defense of the USD/ZAR buyers.

On the flip side, the USD/ZAR recovery needs to cross the previous support line and a one-week-old descending resistance line, respectively near 19.33 and 19.39.

Should the quote manages to remain firmer past 19.39, the 19.40 round figure and the 100-SMA level of around 19.43 may challenge the USD/ZAR bulls.

Overall, USD/ZAR is likely to decline further but the South African GDP has a history of disappointing optimists and the same prods the pair sellers.

USD/ZAR: Four-hour chart

Trend: Further downside expected

Additional important levels

Overview
Today last price	19.2328
Today Daily Change	-0.0299
Today Daily Change %	-0.16
Today daily open	19.2627

Trends
Daily SMA20	19.3449
Daily SMA50	18.6583
Daily SMA100	18.2886
Daily SMA200	17.9075

Levels
Previous Daily High	19.5676
Previous Daily Low	19.2211
Previous Weekly High	19.9217
Previous Weekly Low	19.4038
Previous Monthly High	19.8684
Previous Monthly Low	18.1703
Daily Fibonacci 38.2%	19.3534
Daily Fibonacci 61.8%	19.4352
Daily Pivot Point S1	19.1333
Daily Pivot Point S2	19.0039
Daily Pivot Point S3	18.7867
Daily Pivot Point R1	19.4799
Daily Pivot Point R2	19.697
Daily Pivot Point R3	19.8264

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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