USD/ZAR Price Analysis: Sellers lurk around weekly resistance line
- USD/ZAR consolidates the heaviest daily rebound in over a week.
- MACD, CCI hints at bullish bias, 100-SMA, six-week-old support line challenge sellers.
Despite marking the biggest rebound in a week, USD/ZAR steps back from a short-term resistance line, offered around $15.97 during early Thursday morning in Europe.
It should be noted, however, that the CCI and MACD indicators do tease the bulls, which in turn highlights the weekly resistance line near $16.11 as a key to the South African currency (ZAR) pair’s fresh run-up to the yearly peak of $16.36.
In a case where the USD/ZAR bulls keep reins past $16.36, October 2020 high near $16.80 and the $17.00 threshold will be in focus.
Alternatively, the quote’s current pullback eyes the weekly low of $15.73. However, the 100-SMA and an ascending support line from October 20, 2021, respectively near $15.70 and $15.50, will challenge the USD/ZAR declines afterward.
Adding strength to the downside filters are the tops marked during early November around $15.50, a break of which will make the quote vulnerable to test $15.00 and the last month's bottom close to $14.85.
USD/ZAR: Four-hour chart
Trend: Pullback 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.
