Overview: USD/ZAR is likely to continue its decline towards the lower side during this month. The pair reached the current low 15.1899 this time. The snaps two-day losing streak with week upside gap . Fitch downgrades South Africa to BB-with a negative outlook. The pair seesaws in the choppy range, around 15.43 during Monday Asian session. In doing so pair respects rating downgrade from the global rating giant Fitch while parting ways from the previous decline’s days
The outlook negative appeared in the chart. They are in a strong mood to make fall in the market. The currency looks to benefit when investors are willing to take on more risk in developing countries, the South Africa Rand is trading well below pre-lockdown levels despite a rating downgrade last week Friday, may be heading towards the below level 15000 level before year-end. The primary reason for seeking this behavior come after promising COVID-19 VACCINE news which favored the bears to make further weakness further. The price patterns also get support from indicators and giving confirmation of bearishness.
Technical Analysis: From the above discussion we can say pair moves towards the downwards side and make the lower lows. The sentiments of the seller should stay on the selling side. the pair is falling into trend line. With the context of long term may still be a broad pullback,the pair continued its run of weakness in the whole scenario, the bears started showing their aggression with the full forces, the market is falling with the negative volatility . On the daily chart we can see pair is falling towards south side and making lower swings in the market. The major fall is expected below the level 15.0000.
Major lines EMA are also falling below SMA line, as well the indicator are also creating strong falling in market. On the 4 hourly charts market is forming the double bottom pattern as it creates further bearishness strong. We can if readers want to earn profit better to sit on sell side in the market. RSI is also falling below the 30 line as it creates strong fall in the market as well as MACD also trade below the zero line sell signals formed.The current status of the market is 15.1899 . Support level is 15.0000 followed by 14.6981. Resistance is 15.6469 followed by 16.000.
Trade idea : According to the above case study we can conclude that sellers should sell for 15.1905 target will be 14.6166 and 14.1644. stop loss will be 15.6949.
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