USD/ZAR 4H Chart: Channel Down

Source: Dukascopy Bank SA
© Dukascopy Bank SA
A 310-bar long channel down was formed by USD/ZAR in late January, when the pair refused moving above 11.392. At the moment of writing the pair was changing hands at 10.549, just 881 pips below the upper trend line and 1288 from the recent high. The pair can make such a move in less than a week, as it lies completely within a usual weekly volatility. Despite recent attempt to penetrate the resistance line and end a period of a downside rally, technical indicators are suggesting the recent bullish movement is running out of steam. Therefore, the outlook is bearish, hence, short traders should focus on a weekly S2 at 10.422 and then on a recent low and another weekly support at 10.362.
© Dukascopy Bank SA
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