FxWirePro: South African rand erases previous loss against U.S. dollar, short term trend reversal likely
USD/ZAR is currently trading around 16.47 levels. It made intraday high at 16.70 and low at 16.42 levels. Intraday bias remains slightly bearish till the time pair holds key resistance at 16.70 mark. A daily close above …
It made intraday high at 16.70 and low at 16.42 levels.
Intraday bias remains slightly bearish till the time pair holds key resistance at 16.70 mark.
A daily close above 16.70 will take the parity higher towards key resistances around 16.95, 17.34, 17.58 and 17.88 marks respectively.
Alternatively, a daily close below 16.40 will drag the parity down towards key supports at 16.22, 16.00, 15.70, 15.40, 15.25, 15.10, 15.02, 14.94, 14.72 and 14.50 levels respectively.
Important to note here that 20D, 30D and 55D EMA heads up and confirms the bullish trend in a daily chart. Current downside movement is short term trend correction only.
We prefer to take short position on USD/ZAR around 16.50, stop loss at 16.70 and target of 16.22/$16.00.
