FxWirePro: South African rand erases previous loss against U.S. dollar, short term trend reversal likely
USD/ZAR is currently trading around 18.35 levels. It made intraday high at 18.71 and low at 18.32 levels. Intraday bias remains slightly bearish till the time pair holds key resistance at 18.64 mark. A daily close above …
It made intraday high at 18.71 and low at 18.32 levels.
Intraday bias remains slightly bearish till the time pair holds key resistance at 18.64 mark.
A daily close above 18.64 will take the parity higher towards key resistances around 18.90, 19.02, 19.28 and 19.54 marks respectively.
Alternatively, a daily close below 18.64 will drag the parity down towards key supports at 18.07, 17.60, 17.30, 17.02, 16.70, 16.40, 16.22, 16.00 and 15.70 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 18.40, stop loss at 18.72 and target of 18.10/17.90.
