USDZAR Up 93 Pips in Last Hour, Fares the Worst Out of Forex; Entered Today Down For the 3rd Consecutive Day

Hourly Update

(Last Updated September 16, 2020 23:14 GMT)

At the moment, USDZAR’s rate is up 93 pips (0.06%) from the hour prior. This is a reversal of the price action on the previous hour, in which price moved down. Regarding the trend, note that the strongest trend exists on the 50 hour timeframe. The moving averages on the hourly timeframe suggest a bullishness in price, as the 20, 50, 100 and 200 are all in a bullish alignment — meaning the shorter durations are above the longer duration averages, implying a sound upward trend.

USDZAR End of Day Recap

Updated 00:30 GMT (04:30 EST)

USDZAR is down 2068 pips (1.24%) since the day prior (opening today near 16.4519), marking the 3rd consecutive day a decline has happened. Those trading within the Forex asset class should know that USDZAR was the worst performer in the class. Below is a price chart of USDZAR.

USDZAR

USDZAR Technical Analysis

Moving average crossovers are always interesting, so let’s start there: USDZAR crossed below its 200 day moving average yesterday. 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 1021.4 pips away. Volatility for USDZAR 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 30 day horizon; over that time period, price has been moving down. For additional context, note that price has gone down 6 out of the past 10 days.

The View From Around the Web

Of note is that traders in aggregate have opinions on USDZAR, with 8 buy signals on our radar and 6 sell signals. This imputes a buy/sell ratio of 1.33, which is bullish. As for the rationale, technical traders seem to be citing the appearance of a triangle technical pattern. Here’s a piece we found on dailyfx.com; below is a short snippet from it to give you a taste.

South African Rand strengthens testing key Fibonacci levels


Forex Frank is a forex analyst and market commentator with nearly two decades of experience in currency trading. Follow him on social media: Facebook | Twitter | Instagram