© Dukascopy Bank SA
The rising wedge pattern, currently being formed on an hourly chart of USD/ZAR, may not be the perfect one, since it is not at the end of the major upward move, but there are two distinct converging trend-lines the currency pair tends to respect. If the price rises from the present levels, it will encounter the upper line at 10.0284, where the four-hour R3 is standing as well. In case of a dip another edge of the pattern will be hit, this time at 9.9373.
Although the current set-up implies a break-out to the downside, bearishness will supposedly have a hard time going through the 200-SMA, which at the moment is found around the daily S1.
© Dukascopy Bank SA