USDZAR Up 31 Pips in Last Hour; Moves Up For the 2nd Consecutive Day

Hourly Update

(Last Updated January 6, 2021 2:16 GMT)

Currently, USDZAR’s rate is up 31 pips (0.02%) 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 100 hour timeframe. Price action traders may also wish to note that we see a pin bar candlestick pattern on USDZAR. Given that we see an uptrend on the 20 hourly candle timeframe, and that such candlestick patterns often denote reversals, this may be worth noting. The moving averages on the hourly timeframe suggest a bearishness in price, as the 20, 50, 100 and 200 are all in a bearish alignment — meaning the shorter duration moving averages are below the longer duration averages, implying a stable downward trend.

USDZAR End of Day Recap

Updated 00:30 GMT (04:30 EST)

USDZAR is up 287 pips (0.2%) since the day prior (opening today near 14.7157), marking the 2nd consecutive day it has gone up. Relative to other instruments in the Forex asset class, USDZAR ranked 10th the day prior in terms of percentage price change. The price chart of USDZAR below illustrates.

USDZAR

USDZAR Technical Analysis

Coming into today USDZAR is now close to its 20 day moving averages, which may act as price barrier for the asset. 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 90 day horizon; over that time period, price has been moving down. Or to simplify this another way, note that out of the past 14 days USDZAR’s price has gone down 8 them.

The View From Around the Web

Of note is that traders in aggregate have opinions on USDZAR, with 4 buy signals on our radar and 1 sell signals. This imputes a buy/sell ratio of 4, which is bullish. Here’s a piece we found on dailyfx.com; below is a short snippet from it to give you a taste.

With vaccine optimism in the limelight, how will Rand price action unfold in 2021?