© Dukascopy Bank SA
After a massive sell-off that started in the last days of April USD/ZAR made an attempt to recover, but turned out to be unsuccessful once it reached the resistance at 10.4775. As a result, there is a double bottom pattern emerging on the hourly chart. However, in order for the figure to realise its full bullish potential, i.e. charge at Apr 28 high at 10.6778, the U.S. Dollar has to climb over the neck-line.
Judging by the technical indicators, which are largely mixed, and by the SWFX traders' sentiment, which is signalling that 58% of positions are short, this is an unlikely course of events.
© Dukascopy Bank SA