USD/ZAR Down 536 Pips in Last 4 Hours, in a Downtrend Over Past 90 Days; Pin Bar Pattern Appearing on Chart

USD/ZAR 4 Hour Price Update

Updated July 21, 2020 09:11 AM GMT (05:11 AM EST)

USD/ZAR is down 536 pips (0.32%) since the previous 4 hours (opening the current 4 hour candle near 16.5555), marking the 5th candle in a row a decline has happened. Relative to other instruments in the Forex asset class, USD/ZAR ranked 36th the previous 4 hours in terms of percentage price change.

USD/ZAR End of Day Recap

Updated 00:30 GMT (04:30 EST)

USD/ZAR entered today at 16.62217, up 83 pips (0.05%) from the previous day. Out of the 40 instruments in the Forex asset class, USD/ZAR ended up ranking 17th for the day in terms of price change. The price chart of USD/ZAR below illustrates.

USD/ZAR Technical Analysis

Notably, USD/ZAR is now close to its 20 and 200 day averages, located at 16.8708 and 16.3787 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 200 day average, which is 2434.6 pips away. Trend traders will want to observe that the strongest trend appears on the 30 day horizon; over that time period, price has been moving down. For additional context, note that price has gone up 5 out of the past 10 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

Not much in terms quality buy/sell signals we’re seeing for USDZAR; just 0 sell signals and 2 buy signals. Bulls may note that this suggests a buy/sell ratio that is infinite. But, let’s take that with a grain of salt. 🙂 Here’s a piece we found on tradingview.com; below is a short snippet from it to give you a taste.

We have seen USDZAR test R16.50 in last week as well as on two previous occasions in this longer term downtrend that we find ourself in. Will we see R16.50 being tested again and then bounce weaker from there again? In our minds this is certainly the case that we expect. With all the USD weakness that is going on and being stretched currently we do feel that the USD will probably try to gain some of its lost ground before perhaps weakening again. The EURUSD is struggling to break through the 1.1450 level and the US equities valuations also feels stretched, that could cause some volatility. Looking at the USDZAR graph once again, we can see from the bottom part that the momentum is also bottoming and starting to point to some weakness. We perhaps can see the USDZAR test back to towards the R17.00 level, in this broader R16.50 to R17.50 range we find ourself in for the past 2 months.