USD/ZAR Price Analysis: South African Rand weakens to over 2-week lows against the USD

USD/ZAR regains positive traction amid sustained buying around the USD.
The near-term technical set-up support prospects for a further move up.

Haresh Menghani FXStreet

The USD/ZAR pair jumped to over two-week tops in the last hour, with bulls making a fresh attempt to build on the momentum beyond the 19.00 round-figure mark.

The pair quickly reversed an early dip to the 18.65 region and turned higher for the second consecutive session on Tuesday – also marking its sixth day of a positive move in the previous seven.

The uptick was sponsored by sustained buying around the US dollar, which remained well supported by persistent worries about the economic fallout from the coronavirus pandemic.

This coupled with a historic fall in crude oil prices weighed on investors' sentiment and underpinned the greenback's safe-haven status, assisting the pair to break out of a three-day-old trading range.

USD/ZAR 1-hourly chart

From a technical perspective, the pair finally seems to have confirmed a near-term bullish breakout and now seems poised to extend the trajectory towards challenging record highs, around the 19.35 region.

Some follow-through strength beyond mid-19.00s might be seen as a fresh trigger for bulls and pave the way for a further near-term appreciating move towards the key 20.00 psychological mark.

Technical levels to watch

USD/ZAR

Overview
Today last price	19.0568
Today Daily Change	0.1977
Today Daily Change %	1.05
Today daily open	18.8591

Trends
Daily SMA20	18.2101
Daily SMA50	16.7481
Daily SMA100	15.6036
Daily SMA200	15.2172

Levels
Previous Daily High	18.9552
Previous Daily Low	18.7055
Previous Weekly High	18.9662
Previous Weekly Low	17.9437
Previous Monthly High	18.0895
Previous Monthly Low	15.2132
Daily Fibonacci 38.2%	18.8598
Daily Fibonacci 61.8%	18.8009
Daily Pivot Point S1	18.7247
Daily Pivot Point S2	18.5902
Daily Pivot Point S3	18.475
Daily Pivot Point R1	18.9744
Daily Pivot Point R2	19.0896
Daily Pivot Point R3	19.2241

Author

Haresh Menghani

FXStreet

Haresh Menghani is a detail-oriented professional with 10+ years of extensive experience in analysing the global financial markets.

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