- USD/ZAR surges through an important confluence hurdle near the 16.65-70 region.
- The stage seems set for additional gains, though mixed oscillators warrant caution.
The USD/ZAR pair caught some aggressive bids on Thursday and rallied to near three-week tops, around the 16.85 region amid a goodish pickup in the USD demand.
The strong intraday positive move pushed the pair through an important confluence resistance near the 16.65-70 region. The mentioned barrier comprised of 100-period SMA on the 4-hourly chart and the top end of over one-month-old descending trend-channel.
This comes on the back of the recent bounce from the 16.40-35 strong horizontal support and might have shifted the near-term bias in favour of bullish traders. Hence, some follow-through strength, back towards the 17.00 mark, looks a distinct possibility.
Meanwhile, technical indicators on hourly charts are already flashing slightly overbought conditions. Moreover, oscillators on the daily chart – though have been recovering – are yet to confirm the bullish bias and warrant some caution.
That said, any pullback should now find decent support, rather might still be seen as a buying opportunity near the mentioned confluence resistance breakpoint, around the 16.70-65 region.
USD/ZAR 4-hourly chart
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Technical levels to watch
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