USD/ZAR Price Analysis: Sellers attack 50-DMA, previous resistance near five-week low
- USD/ZAR stays pressured around the lowest level since November 17, down for fourth consecutive day.
- Bearish MACD signals, clear downside break of two-month-old previous support line favor sellers.
- 100-DMA, six-month-old ascending trend line lure bears, upside momentum remains elusive below $16.15.
USD/ZAR remains on the back foot around a multi-day low, down 0.50% intraday close to $15.55 heading into Monday’s European session.
In doing so, the South African currency (ZAR) pair declines for the fourth consecutive day as the bears battle the resistance-turned-support and the 50-DMA level. Also favoring the pair sellers are the bearish MACD signals and failures to stay firmer beyond $16.00.
Even so, a daily closing below $15.54 becomes necessary for the USD/ZAR bears to extend the ruling towards September’s peak of $15.25.
Following that, the 100-DMA and upward sloping trend line from June, respectively around $15.15 and $14.80, will gain the market’s attention.
Should the quote bounce off $15.15-14 support confluence, the early December’s low near $15.66 the previous support line from October 20, close to $16.15, will challenge the USD/ZAR bulls.
In a case where the quote stays firmer beyond $16.16, the recently flashed multi-day high near $16.36 and the $17.00 round figure will be in focus.
USD/ZAR: Daily chart
Trend: Further weakness expected
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.
