USD/ZAR hits 1-month low, looks bearish in the short- and medium-term.
USD/ZAR posted losses after recording a one-and-a-half-month high of 12.105 last Monday, eventually hitting a one-month low of 11.596 earlier in the day.
The RSI continues to decline after crossing below the 50 neutral-perceived level, pointing to a negative short-term picture for the pair.
Support to further losses could come around the three-year low of 11.502 that was recorded in late February, while on the upside, resistance to advances might be met around the current level of the 50-day moving average at 11.853. The area around this level was congested recently and also includes a bottom from late January at 11.790. Further above, the focus would turn to last week’s one-and-a-half-month high of 12.105.
The medium-term outlook is bearish, with trading taking place below the 50- and 100-day MA lines and both lines heading lower. Moreover, price action seems to have confirmed the signal given by the bearish cross recorded in the first half of January when the 50-day MA moved below the 100-day one.
To sum up, both the short- and medium-term outlooks are currently looking bearish.
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