USDZAR Up 263 Pips Over Past Hour, Underperforms All Forex; in a Downtrend Over Past 30 Days

Hourly Update

(Last Updated September 17, 2020 23:14 GMT)

Currently, USDZAR’s rate is up 263 pips (0.16%) 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 20 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 day in a row a decrease has occurred. Those trading within the Forex asset class should know that USDZAR was the worst performer in the class. Let’s take a look at price chart of USDZAR.

USDZAR

USDZAR Technical Analysis

Notably, 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. The clearest trend exists on the 30 day timeframe, which shows price moving down over that time. Or to simplify this another way, note that out of the past 10 days USDZAR’s price has gone down 6 them.

The View From Around the Web

Of note is that traders in aggregate have opinions on USDZAR, with 7 buy signals on our radar and 4 sell signals. This imputes a buy/sell ratio of 1.75, 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 tradingview.com; below is a short snippet from it to give you a taste.

The pair is currently trading close to the strong key level 3….The following are my thoughts about the pair :- Previously the pair traded nicely on triangle(A), rejected by the key level 3 then broke out of the triangle to key level 2….If the current candle closes below key level 3, this will clearly signal the continuation of the strong bearish move with anticipated next level being key level 4.


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