USD/ZAR 1H Chart: Greenback close to channel border
During the past two weeks, the US Dollar has gained momentum against the South African Rand, thus forming a steep ascending channel. This pattern is a part of a medium-term descending channel.
Currently, the rate is located in between the boundaries of two channels; thus, the following hours might demonstrate which could be the dominant direction during this week, at least. Given that the rate respects the boundaries of the senior channel, it should edge lower and try to approach its bottom boundary during the following weeks.
The US Dollar breaching the 55– and 100-hour SMAs near the 13.70 mark could confirm this scenario. Trend indicators show mixed results, but it seems that they point to a possible decline.
Conversely, the rate might breach the senior pattern and test the six-month high at 13.8511.
Currently, the rate is located in between the boundaries of two channels; thus, the following hours might demonstrate which could be the dominant direction during this week, at least. Given that the rate respects the boundaries of the senior channel, it should edge lower and try to approach its bottom boundary during the following weeks.
The US Dollar breaching the 55– and 100-hour SMAs near the 13.70 mark could confirm this scenario. Trend indicators show mixed results, but it seems that they point to a possible decline.
Conversely, the rate might breach the senior pattern and test the six-month high at 13.8511.