USD/ZAR Price Analysis: Rises 0.30%, gains could be short-lived

USD/ZAR looks south with a range breakdown on the daily chart.
Key indicators favor a test of deeper support levels.

Omkar Godbole FXStreet Contributor

USD/ZAR is trading at 17.1773 at press time, representing a 0.30% gain on the day.

The bounce could be short-lived, as the daily chart studies are reporting bearish conditions. To start with, Thursday's 1.34% decline, the biggest single-day decline since May 21, confirmed a downside break of the narrow trading range of 17.1670-17.50.

The range breakdown suggests the bounce from the June 10 low of 16.3204 has ended and the bears have regained control. In addition, the 14-day relative strength index is hovering in bearish territory below 50 and the MACD histogram is beginning to chart lower bars above the zero line, a sign of weakening of upward momentum.

The pair risks falling to the psychological support of 17.00, which, if breached, would shift the focus to 16.3204. A close above Thursday's high of 17.5303 is needed to restore the bullish view.

Daily chart

Trend: Bearish

Technical levels

USD/ZAR

Overview
Today last price	17.1773
Today Daily Change	0.0340
Today Daily Change %	0.20
Today daily open	17.1433

Trends
Daily SMA20	17.1139
Daily SMA50	17.8811
Daily SMA100	17.2382
Daily SMA200	15.951

Levels
Previous Daily High	17.5322
Previous Daily Low	17.1257
Previous Weekly High	17.5104
Previous Weekly Low	16.8922
Previous Monthly High	18.9592
Previous Monthly Low	17.2921
Daily Fibonacci 38.2%	17.281
Daily Fibonacci 61.8%	17.3769
Daily Pivot Point S1	17.0019
Daily Pivot Point S2	16.8606
Daily Pivot Point S3	16.5954
Daily Pivot Point R1	17.4084
Daily Pivot Point R2	17.6735
Daily Pivot Point R3	17.8149

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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