USD/ZAR 4H Chart: Channel Up

Following a protracted period of consolidation beneath 10.50 that dragged on for the whole summer and a half of September, USD/ZAR seems to have finally commenced a robust recovery.

However, in order to confirm its bullish intentions, the currency pair will first need to find support at the lower boundary of the emerging channel up, namely at 9.9082. Then it will be well-positioned to rally en route to 10.50. In the meantime, a substantial part of the SWFX market participants doubt ability of the U.S. Dollar to appreciate with respect to the Rand. Right now 74% of traders are short on the pair.