The American Dollar is trading against the South African Rand in the ascending channel, which has formed on this trading week after the currency rate bounced off from the weekly S2 at 13.0746 and broke through the upper trend line of the preceding descending channel. It is likely that the pair will continue an upward movement until it meets the combined resistance put by the monthly and weekly PP at 13.4136 and 13.4693, accordingly. Market participants should watch these levels, as decline or horizontal movements of the pair are likely to follow. In the meanwhile, SWFX market sentiment indicates that the currency pair is already overbought, as 75% of trader open positions are short.
| Level | Rationale | Indicator | 1H | 4H | 1D | |||
| R4 | 13.4136 | Monthly PP | MACD (12; 26; 9) | Sell | Sell | Sell | ||
| R3 | 13.3907 | Trend line | RSI (14) | Buy | Sell | Sell | ||
| R2 | 13.3779 | 200-period SMA | Stochastic (5; 3; 3) | Neutral | Neutral | Neutral | ||
| R1 | 13.3486 | Upper Bollinger Band | ADX (14) | Sell | Sell | Neutral | ||
| S1 | 13.2538 | Trend line | CCI (14) | Neutral | Buy | Neutral | ||
| S2 | 13.2293 | 100-period SMA | AROON (14) | Neutral | Sell | Neutral | ||
| S3 | 13.2286/73 | 20-period SMA; Weekly S1 | Alligator (13; 8; 5) | Buy | Buy | Buy | ||
| S4 | 13.1590 | 55-period SMA | SAR (0.02; 0.2) | Buy | Neutral | Sell | ||
| Aggregate | → | ↘ | ↘ |