USD/ZAR Price Analysis: Bounces off 10-week-old horizontal support but bulls stay cautious
- USD/ZAR struggles to keep bounce off short-term key support line.
- Bullish MACD backs rebound towards four-month-long horizontal hurdle.
- 100-day SMA adds to the upside filters, 14.00 threshold offers extra support.
USD/ZAR remains sidelined around 14.20-25, trimming the previous day’s losses with a 0.07% intraday run-up, amid Tuesday’s Asian session.
The quote took a U-turn from 100-day SMA the previous day before recently bouncing off a horizontal line from mid-April.
Although the bullish MACD signals back the latest recovery, multiple levels marked since February offer strong immediate resistance to USD/ZAR, around 14.40, ahead of directing the bulls to 100-day SMA close to 14.45.
During the pair’s recovery past 14.45, May’s high near 14.55 will be important to watch.
On the flip side, a daily closing below 14.14 horizontal support may aim for the six-week low near 13.95 prior to highlighting the 13.80-78 region for the USD/ZAR bears.
In a case where the pair sellers dominate below 13.78, the yearly low of around 13.40 will be in focus.
Overall, USD/ZAR remains range-bound during the recovery mode.
USD/ZAR daily chart
Trend: Sideways