USD/ZAR Price Analysis: Struggles above 17.00 inside monthly falling channel

USD/ZAR steps back from the three-day top of 17.61.
U-turn from channel’s support, amid oversold RSI, keeps the buyers hopeful.
The yearly ascending trend line provides strong support below the channel formation.

Anil Panchal FXStreet

USD/ZAR drops to 17.50 amid the initial Asian session on Friday. The pair bounced off the support line of a falling trend channel from April 24 while taking support from the oversold RSI conditions on Thursday. Though, buyers fail to ignore bearish MACD and struggle to keep the reins above 17.00.

As a result, sellers are on the lookout for entries and wait for the clear signals. In doing so, the channel’s lower line, at 17.20, will be backed by an ascending trend line from January 01, 2020, currently around 17.00.

If at all USD/ZAR prices slip below 17.00 on a daily closing basis, 61.8% Fibonacci retracement of January-April upside, close to 16.00, will lure the sellers.

Alternatively, the bulls may stay cautious unless the quote crosses the upper line of the said channel, at 18.40 now. However, an intermediate pullback to 17.90 can’t be ruled out.

USD/ZAR daily chart

Trend: Bearish

Additional important levels

Overview
Today last price	17.5075
Today Daily Change	0.1287
Today Daily Change %	0.74%
Today daily open	17.3788

Trends
Daily SMA20	18.2384
Daily SMA50	18.2742
Daily SMA100	16.697
Daily SMA200	15.7221

Levels
Previous Daily High	17.5361
Previous Daily Low	17.3302
Previous Weekly High	18.6049
Previous Weekly Low	17.5178
Previous Monthly High	19.3733
Previous Monthly Low	17.7006
Daily Fibonacci 38.2%	17.4089
Daily Fibonacci 61.8%	17.4574
Daily Pivot Point S1	17.294
Daily Pivot Point S2	17.2092
Daily Pivot Point S3	17.0882
Daily Pivot Point R1	17.4999
Daily Pivot Point R2	17.6209
Daily Pivot Point R3	17.7057

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.

EUR/USD keeps the rangebound trade near 1.1850

EUR/USD is still under pressure, drifting back towards the 1.1850 area as Monday’s session draws to a close. The modest decline in spot comes as the US Dollar picks up a bit of support, while thin liquidity and muted volatility, thanks to the US market holiday, are exaggerating price swings and keeping trading conditions choppy.

GBP/USD flirts with daily lows near 1.3630

GBP/USD has quickly given back Friday’s solid gains, turning lower at the start of the week and drifting back towards the 1.3630 area. The focus now shifts squarely to Tuesday’s UK labour market report, which is likely to keep the quid firmly in the spotlight and could set the tone for Cable’s next move.

Gold battle around $5,000 continues

Gold is giving back part of Friday’s sharp rebound, deflating below the key $5,000 mark per troy ounce as the new week gets underway. Modest gains in the US Dollar are keeping the metal in check, while thin trading conditions, due to the Presidents Day holiday in the US, are adding to the choppy and hesitant tone across markets.

AI Crypto Update: Bittensor eyes breakout as AI tokens falter

The artificial intelligence (AI) cryptocurrency segment is witnessing heightened volatility, with top tokens such as Near Protocol (NEAR) struggling to gain traction amid the persistent decline in January and February.

The week ahead: Key inflation readings and why the AI trade could be overdone

It is likely to be a quiet start to the week, with US markets closed on Monday for Presidents Day. European markets are higher across the board and gold is clinging to the $5,000 level after the tamer than expected CPI report in the US reduced haven flows to precious metals.

XRP steadies in narrow range as fund inflows, futures interest rise

Ripple is trading in a narrow range between $1.45 (immediate support) and $1.50 (resistance) at the time of writing on Monday. The remittance token extended its recovery last week, peaking at $1.67 on Sunday from the weekly open at $1.43.