USD/ZAR Price Analysis: South African Rand eases from record high within longer-term bullish channel

USD/ZAR retreats from all-time high to pare the biggest daily gains in a year amid overbought RSI.
18-month-old rising trend channel keeps South African Rand sellers hopeful.
Previous resistance from March restricts immediate downside ahead of 10-DMA.

Anil Panchal FXStreet

USD/ZAR takes offers to refresh intraday low as it steps back from the all-time high marked the previous day. In doing so, the South African Rand (ZAR) pair drops 0.25% intraday to 19.75 heading into Friday’s European session.

That said, the USD/ZAR pair marked the biggest daily gains in a year the previous day as it crossed an upward-sloping resistance line from March, now immediate support near 19.70. However, the overbought RSI (14) allowed South African Rand traders to lick their wounds within a 1.5-year-old rising trend channel bullish formation.

Hence, a two-month-old resistance-turned-support line, around 19.70 restricts the immediate downside of the USD/ZAR pair ahead of highlighting the tops marked earlier in the month around 19.52 and 19.51.

In a case where the South African Rand recovers beyond 19.51, the 10-DMA and an upward-sloping trend line from October 2022, close to 19.33 and 18.80 in that order, could challenge the pair sellers.

On the flip side, the 20.00 psychological magnet lures the USD/ZAR buyers ahead of the stated channel’s top line surrounding 20.12.

Overall, the South African Rand remains on the bear’s radar despite the latest pullback.

USD/ZAR: Daily chart

Trend: Pullback expected

Additional important levels

Overview
Today last price	19.7426
Today Daily Change	-0.0612
Today Daily Change %	-0.31%
Today daily open	19.8038

Trends
Daily SMA20	18.9081
Daily SMA50	18.4809
Daily SMA100	18.1023
Daily SMA200	17.8135

Levels
Previous Daily High	19.8326
Previous Daily Low	19.2395
Previous Weekly High	19.525
Previous Weekly Low	18.9943
Previous Monthly High	18.5399
Previous Monthly Low	17.7526
Daily Fibonacci 38.2%	19.606
Daily Fibonacci 61.8%	19.4661
Daily Pivot Point S1	19.418
Daily Pivot Point S2	19.0323
Daily Pivot Point S3	18.825
Daily Pivot Point R1	20.011
Daily Pivot Point R2	20.2183
Daily Pivot Point R3	20.604

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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