USDZAR Up 539 Pips in Last Hour, 5 Day Down Streak Snapped; Price Base in Formation Over Past 30 Days

Hourly Update

(Last Updated October 6, 2020 15:14 GMT)

At the moment, USDZAR’s rate is up 539 pips (0.33%) from the hour prior. It’s been a feast for bears operating on an hourly timeframe, as USDZAR has now gone down 4 of the past 5 hours. Regarding the trend, note that the strongest trend exists on the 100 hour timeframe. Regarding moving averages, it should first be noted that price has crossed the 50 hour moving average, resulting in them with price now being above it. The moving averages on the hourly timeframe suggest a choppiness in price, as the 20, 50, 100 and 200 are all in a mixed alignment — meaning the trend across timeframes is inconsistent, indicating a potential opportunity for rangebound traders.

USDZAR End of Day Recap

Updated 00:30 GMT (04:30 EST)

After 5 down days, USDZAR snaps its streak, rising 701 pips (0.42%) over the past day to close at an exchange rate of 16.575999. Out of the 40 instruments in the Forex asset class, USDZAR ended up ranking 11th for the day in terms of price change. The price chart of USDZAR below illustrates.

USDZAR

USDZAR Technical Analysis

The first thing we should note is that USDZAR is now close to its 20, 50, 100 and 200 day averages, located at 16.699, 16.9243, 16.9963 and 16.7167 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 1230.5 pips away. It should be noted, though, the 50 day simple moving average turned upwards, which may be a bullish sign. Price action traders in particular will want to note that the 30 day period appears to show price forming a base; this could indicate that a support/resistance level is developing. Or to simplify this another way, note that out of the past 30 days USDZAR’s price has gone down 17 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

Of note is that traders in aggregate have opinions on USDZAR, with 8 buy signals on our radar and 0 sell signals. This imputes a buy/sell ratio that’s infinite! But, let’s take that with a grain of salt. 🙂 As for the rationale, technical traders seem to be citing the appearance of a wedge technical pattern. Here’s a piece we found on tradingview.com; below is a short snippet from it to give you a taste.

With the important support level of 16.55 broken and price now trading below the wedge it is likely that we will see the 16.10 area tested where it will meet support from the Monthly S1….Only a close back above the Monthly Pivot @ 16.68 will invalidate this move and give us higher targets in the vicinity of 17.00