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Technical Analysis – USD/ZAR still negative

USD/ZAR 07/12/18 | EconAlerts

USD/ZAR still negative approaches downtrend line.

USD/ZAR continues to print lower lows and lower highs on the daily chart below a downtrend line drawn from the highs of September 6. Hence, the broader picture remains negative for now. For it to turn neutral, it would require a clear close above the crossroads of the downtrend line, the 50-day SMA, and the 14.56 level.

Short-term momentum oscillators, though, suggest the latest bounce may continue for a while. The RSI just pierced above its neutral 50 line, while the MACD crossed above its red trigger line.

Further advances may find immediate resistance near the aforementioned crossroads. A decisive close above it would shift the bias to flat, setting the stage for a test of the October 31 high of 14.85, before the October 9 peak of 15.07 comes into view.

On the downside, the first wave of support to declines may come around the 14.00 handle, marked by the inside swing high on November 28. A bearish break may open the way for 13.53, the December 4 trough. Notice that the 200-day SMA at 13.42 lies not far below. Lower still, buy orders may be found near the July lows of 13.07.

Recapping, the overall picture is still negative; a break above 14.56 is required to turn it neutral.

USD/ZAR 07/12/18 | EconAlerts



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Source: XM

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