USD/ZAR Up 754 Pips Over Past 4 Hours, 2 Day Down Streak Ended; Eyes 50 Day Average

USD/ZAR 4 Hour Price Update

Updated May 19, 2020 05:13 PM GMT (01:13 PM EST)

USD/ZAR entered the current 4 hour candle at 18.2747, up 754 pips (0.41%) from the previous 4 hours. Compared to its peers in the Forex, USD/ZAR gave its buyers a return that ranked 6th in terms of percentage change since the previous 4 hours.

USD/ZAR End of Day Recap

Updated 00:30 GMT (04:30 EST)

USD/ZAR entered today at 18.35041, up 169 pips (0.09%) from the previous day. Compared to its peers in the Forex, USD/ZAR gave its buyers a return that ranked 10th in terms of percentage change since the previous day. Let’s take a look at price chart of USD/ZAR.

USD/ZAR Technical Analysis

Notably, USD/ZAR is now close to its 20 and 50 day averages, located at 18.5164 and 18.4086 respectively, and thus may be at a key juncture along those timeframes. 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. The clearest trend exists on the 90 day timeframe, which shows price moving up over that time. Interestingly, a trend in the other direction exists on the 30 day timeframe, where price is headed down. Or to simplify this another way, note that out of the past 14 days USD/ZAR’s price has gone up 7 them. Also, candlestick traders! Note we see pin bar pattern appearing here as well.

The View From Around the Web

Of note is that traders in aggregate have opinions on USDZAR, with 4 buy signals on our radar and 5 sell signals. This imputes a buy/sell ratio of 0.8, which is neutral. As for the rationale, technical traders seem to be citing the appearance of channel and triangle technical patterns. Here’s a piece we found on tradingview.com; below is a short snippet from it to give you a taste.

Triangle consolidations are normally continuation patterns in the direction of the preceding trend….Triangle is still in development but one to keep an eye on as we approach the bottom end of the channel….In either scenario, one would wait for a break of the triangle to confirm direction, but should we continue in the same direction of the previous trend and breakout eventually, the triangle projects a target of 20.10-20.30 against the US Dollar.