© Dukascopy Bank SA
USD/ZAR has recently topped out at 11.40 and since then has been trading in the down-trend. Based on this, we may assume that in the nearest future the exchange rate will not surge above the falling resistance line at 10.90. Even if this level does give in to the buying pressure, there will also be the weekly R1 and the 200-period SMA near 11.00.
Consequently, the U.S. Dollar is more likely to target 10.60-10.55 region, especially considering that is has just bounced of the upper edge of the bearish channel. Meanwhile, SWFX market participants are almost equally divided in their views on USD/ZAR—46% are holding long and 54% short positions.
© Dukascopy Bank SA