USD/ZAR Price Analysis: Corrective pullback remains elusive around $16.00
- USD/ZAR struggles to extend the bounce off monthly support line, stays below 100-SMA.
- Steady RSI hints at further downside towards 200-SMA.
- Fortnight-long resistance line, yearly top also challenge buyers.
USD/ZAR consolidates recent losses around $16.00, up 0.26% intraday ahead of Friday’s European session.
The South African currency (ZAR) pair dropped below an ascending support line from mid-November the previous day before bouncing off $15.84.
The recovery moves, however, remain below the 100-SMA amid steady RSI conditions, which in turn suggests another attempt to break the stated support line near $15.87.
Following that, the 200-SMA level of $15.70 will be important as a clear downside break of the same will direct USD/ZAR sellers towards the early November peaks near $15.50.
Meanwhile, recovery moves past 100-SMA level of $16.00 will be tested by $16.15 and an ascending resistance line from December 03, near $16.25.
Also acting as an upside filter is the 2021 peak, marked in November, around $16.36, a break of which will direct USD/ZAR bulls towards $1,700 and then to September 2020 peak close to $17.40.
USD/ZAR: Four-hour chart
Trend: Further weakness expected