USD/ZAR Up 569 Pips Over Past 4 Hours, Entered Today Up For the 5th Day In A Row; Pin Bar Pattern Appearing on Chart

USD/ZAR 4 Hour Price Update

Updated May 14, 2020 09:08 AM GMT (05:08 AM EST)

USD/ZAR is up 569 pips (0.31%) since the previous 4 hours (opening the current 4 hour candle near 18.5556), marking the 2nd candle in a row an increase has occurred. USD/ZAR outperformed all 37 assets in the Forex asset class the previous 4 hours. Congrats to its holders!

USD/ZAR End of Day Recap

Updated 00:30 GMT (04:30 EST)

USD/ZAR is up 54 pips (0.03%) since the previous day (opening today near 18.49836), marking the 5th day in a row it has gone up. Compared to its peers in the Forex, USD/ZAR gave its buyers a return that ranked 18th in terms of percentage change since the previous day. The price chart of USD/ZAR below illustrates.

USD/ZAR Technical Analysis

The first thing we should note is that USD/ZAR is now close to its 20 and 50 day averages, located at 18.6377 and 18.3275 respectively, and thus may be at a key juncture along those timeframes. The clearest trend exists on the 90 day timeframe, which shows price moving up over that time. 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 14 days USD/ZAR’s price has gone up 9 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

We’re seeing some traders come out with interesting conviction on USDZAR, with 7 buy signals on our radar and 8 sell signals. This imputes a buy/sell ratio of 0.88, which is neutral. 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.

The purple arrows denote the movement I believe will take place if the H4 trendline I have drawn in is not correctly broken, in that case I believe price will move to the lower bound of H4 channel before making a bullish price movement….The yellow arrows denote the movement I believe will take place if the H4 trendline is correctly broken, after which I believe the H1 channel I have drawn in will continue to be respected to the upper bound of the H4 channel before making a bearish price movement….I’m trading the USDZAR strictly on the H1 given the unpredictable nature of its longer term movements.