USD/ZAR Up 76 Pips On 4 Hour Chart, Makes Big Move Relative to Two Week Trend; Pin Bar Pattern Appearing on Chart

USD/ZAR 4 Hour Price Update

Updated July 02, 2020 01:16 AM GMT (09:16 PM EST)

After 4 down four-hour candles, USD/ZAR snaps its streak, rising 76 pips (0.04%) over the past four-hour candle to close at an exchange rate of 17.0539. Out of the 37 instruments in the Forex asset class, USD/ZAR ended up ranking 7th for the four-hour candle in terms of price change.

USD/ZAR End of Day Recap

Updated 00:30 GMT (04:30 EST)

The back and forth price flow continues for USD/ZAR, which started today off at 17.05612, up 219 pips 0.13% from yesterday. Relative to other instruments in the Forex asset class, USD/ZAR ranked 5th yesterday in terms of percentage price change. The price chart of USD/ZAR below illustrates.

USD/ZAR Technical Analysis

Notably, USD/ZAR is now close to its 20 day averages, located at 17.1773 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 1211.7 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. Or to simplify this another way, note that out of the past 30 days USD/ZAR’s price has gone down 16 them. 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

Not much in terms quality buy/sell signals we’re seeing for USDZAR; just 3 sell signals and 1 buy signals. This imputes a buy/sell ratio of 0.33, 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 tradingview.com; below is a short snippet from it to give you a taste.

For demonstration and educational purposes only….As we study price action we see a flag and what appears to be a rejection on an attempt to rally/buy further….This could be the making of a swing trade.