Technical Analysis – USDZAR rebounds, but still neutral overall
Posted on July 31, 2019 at 2:28 pm GMT
Marios Hadjikyriacos, XM Investment Research Desk
USDZAR rebounded substantially in recent days, to challenge the 14.31 zone and the 50-day simple moving average (SMA), before retreating somewhat. There is currently no clear trending structure in place. For that to change, either the bears would need to push for a new low below 13.80, or the bulls would have to lift the pair above the 50-day SMA, turning the bias slightly more positive.
Short-term momentum oscillators concur, as neither the RSI nor the MACD is providing a strong directional signal.
In the bullish scenario, a break above the 50-day SMA and the 14.31 zone could initially open the door for 14.62 – the inside swing low of June 12.
On the downside, a dive below 13.80 would mark a lower low on the daily timeframe, turning the focus to 13.64, an area marked by the mid-January trough.
Summarizing, as long as the price remains between 14.31 and 13.80, the near-term bias is flat.