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USD/ZAR Overview:
Rand Dollar Forecast
USD/ZAR has continued to pursue its move higher as US Dollar strength remains the prominent driver of price action. With South African retail sales declining at a rapid pace, the economy has experienced 1345 hours (56 days) of loadshedding (rolling blackouts) since the start of the year. This has exacerbated the slowdown in growth adding pressure to the labor market and to the future trajectory of the developing nation.
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As the pair aims to achieve its third consecutive month of gains, the 17.00 psychological handle remains as critical resistance. With the uptrend pushing prices higher, a MACD (moving average convergence/divergence) crossover above the zero line suggests that the bullish move may be able to gain traction.
USD/ZAR Monthly Chart
Chart prepared by Tammy Da Costa using TradingView
On the daily chart, the MACD is hovering around the zero-line which could be indicative of a big zone of both support and resistance with the psych 17.00 level and Fibonacci levels highlighting additional levels of prominence.
USD/ZAR Daily Chart
Chart prepared by Tammy Da Costa using TradingView
At the time of writing, a hold above 17.00 could see a retest of the July high at 17.27 with a move higher bringing 17.672 (the 78.6% retracement of the 2018 – 2020 move) back into play.
However, if bears manage to drive price action lower, the 50-day MA could provide a layer of support at 16.50 and towards 16.00.
— Written by Tammy Da Costa, Analyst for DailyFX.com
Contact and follow Tammy on Twitter: @Tams707
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Image and article originally from www.dailyfx.com. Read the original article here.