FX.co ★ USD/ZAR

USD/ZAR. Hello. The Dollar/Rand closed the past week with another bearish candle, while the pair remains within the boundaries of the global trend channel, currently near its lower boundary, so in the global perspective, I expect a move towards the upper boundary. However, there is no reason to open long positions based on the technical analysis at the moment. On the hourly chart, indicators continue to point towards further decline, but the picture is currently unclear. The pair spent the whole day within a very narrow range, and there are two possible scenarios: either the bears are unable to push the pair lower, or there is a local consolidation before further decline. On the 4-hour chart, indicators also showed a new sell signal, but it is not activated yet; a break below the lower boundary of the trend channel is needed for activation. Additionally, the lower indicators have shown significant bullish divergences hinting at a reversal. Therefore, next week I expect a move to the upside, with the first target at 16.400-450, but there is a possibility of going even higher.