FxWirePro: USD/ZAR hits multi-month lows, more bearish traction upon bearish WMA and EMA crossover with abrupt rebounds

In this edition of technical analysis of USDZAR, we’ve emphasized more on long-term prospects of USDZAR coupled with short term trend as well.

The pair extend dragging price drops, the current prices have consistently been dropping below 7WMA, price behavior drifting in falling wedge (refer weekly chart).

The immediate pivot point is at 12.50 levels.

Both leading indicators are positively converging to the ongoing slumps, RSI trending below 32 levels indicates strength in selling interests, while slow stochastic has also shown a %d crossover even below oversold territory which signals the intensified bearish momentum. Same has been the case on monthly plotting.

Additionally, 2016 hasn’t been favourable for USD against ZAR and 2017 has continued the similar trend so far. The major trend of this pair seems weaker ever since it has rejected the resistances of 15.8679 levels and it has hit multi-month lows of 12.5955 levels.

Leading oscillators are signaling the intensified bearish momentum, while bearish EMA crossover indicates more slumps on cards

To substantiate this bearish stance, MACD on both weekly and monthly plotting indicates more bear rout in this pair to prolong further.

Overall, the major trend has been bearish bias, while any abrupt spikes in short term trend should not be surprised.

Thus, at spot ref: 12.5012 we recommend speculating this pair via one touch binary puts for further southward targets for the day.

Use these speculative instruments for adding the magnifying effects to the profitability when the research is so certain.

Having said that we wrap up with a concluding note when traders buy a put with the above-mentioned arrangement and this contract is on winning move, they are given a unit of the asset, instead of a fixed amount of cash. Thus, the price of the asset at expiry determines the trader’s gain.