USD/ZAR Up 492 Pips On 4 Hour Chart, Makes Big Move Relative to Past Month; Came Into Today Up For the 4th Day In A Row

USD/ZAR 4 Hour Price Update

Updated July 31, 2020 05:06 AM GMT (01:06 AM EST)

USD/ZAR entered the current 4 hour candle at 16.7509, up 492 pips (0.29%) from the previous 4 hours. For context, observe that the previous 4 hours were noteworthy in the sense that USD/ZAR bested all 37 of the assets in the Forex class.

USD/ZAR End of Day Recap

Updated 00:30 GMT (04:30 EST)

USD/ZAR is up 78 pips (0.05%) since the previous day (opening today near 16.74735), marking the 4th day in a row it has gone up. Compared to its peers in the Forex, USD/ZAR gave its buyers a return that ranked 20th in terms of percentage change since the previous day. Let’s take a look at price chart of USD/ZAR.


USD/ZAR Technical Analysis

The first thing we should note is that USD/ZAR is now close to its 20, 50 and 200 day averages, located at 16.6468, 16.9057 and 16.4656 respectively, and thus may be at a key juncture along those timeframes. As for the alignment of the moving averages, well, it’s a bit mixed up; the 20, 50, 100, and 200 do not progress from largest to smallest, or vice versa. The closest is the 20 day average, which is 1005 pips away. Volatility for USD/ZAR has been contracting over the past two weeks relative to volatility over the past month. Whether volatility reverts will be something to watch. Trend traders will want to observe that the strongest trend appears on the 90 day horizon; over that time period, price has been moving down. Price action traders in particular will want to note that the 14 day period appears to show price forming a base; this could indicate that a support/resistance level is developing. For additional context, note that price has gone up 17 out of the past 30 days. And for candlestick traders, a special treat: there is a pin bar pattern showing up on the charts as well. Rejoice!

The View From Around the Web

We’re seeing some traders come out with interesting conviction on USDZAR, with 3 buy signals on our radar and 5 sell signals. This imputes a buy/sell ratio of 0.6, which is bearish. As for the rationale, technical traders seem to be citing the appearance of a channel technical pattern. Here’s a piece we found on; below is a short snippet from it to give you a taste.

Should price continue to hold above the support area between the W neckline at 16.75 and the breakout level at 16.65….We could see price advancing to the target area of 17.10 to 17.35….Note that there is some resistance at the 16.90 level which could trigger a short consolidation or pullback to the support level.