USD/ZAR Down 117 Pips Over Past 4 Hours, Came Into Today Up For the 3rd Day In A Row; Pin Bar Pattern Appearing on Chart

USD/ZAR 4 Hour Price Update

Updated July 30, 2020 01:10 AM GMT (09:10 PM EST)

USD/ZAR, which opened the current 4 hour candle priced near 16.5434, is down 117 pips 0.07% since the last 4 hour candle, marking a reversal from the candle prior — and the end of a 3 four-hour candle positive run. Relative to other instruments in the Forex asset class, USD/ZAR ranked 25th the last 4 hour candle in terms of percentage price change.

USD/ZAR End of Day Recap

Updated 00:30 GMT (04:30 EST)

USD/ZAR is up 116 pips (0.07%) since the previous day (opening today near 16.54224), marking the 3rd day in a row an upward move has occurred. Relative to other instruments in the Forex asset class, USD/ZAR ranked 12th the previous day in terms of percentage price change. Here is a price chart of USD/ZAR.

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 moving averages, which may act as price barrier for the asset. 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 200 day average, which is 879.4 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. The clearest trend exists on the 90 day timeframe, which shows price moving down over that time. For additional context, note that price has gone up 9 out of the past 14 days. Oh, and one last thing: if you trade off of candlesticks, note that we’re seeing pin bar pattern appearing here.

The View From Around the Web

Not much commentary on USDZAR that we’re finding noteworthy here; as such, there’s not much we can say about sentiment. Here’s a piece we found on tradingview.com; below is a short snippet from it to give you a taste.

Major resistance for the USD/ZAR pair is expected at 17.27 and a break above this rate will see the forecast range between 17.32 – 17.48 realize year-end. A move into this range is less probable than the zone’s below the major resistance of 17.28. Red zone 1 is expected for August month-end.Red zone 2 is expected for September month-end.Red zone 3 is expected for October and November month-end.Red zone 3 is critical and could be seen as a resistance zone, an upside move out of this range will allow the USD/ZAR to move up into the forecasted year-end range if the resistance at 17.28 does not hold. A failed break above 17.27 will see the USD/ZAR retrace it’s gains and close the year in red zone 3. A failed break above the red zone 3 will see the pair retrace it’s gains and close in the red zone 2, which is at the moment the most likely yearly closing range . Rand strength:The 200-day exponential average, currently at 16.42, is expected to keep the rands’ gains at bay. Rand strength will allow the pair to break this support rate and move the pair into the neutral zone (red zone: 0). A break below the neutral zone will allow the rand to strengthen into “yellow zone 1” between 15.88 and 16.08. The best case scenario for the rand will be a move towards the floor at 15.50, in “yellow zone 2.”