USD/ZAR Looks to Drop towards the 7.60 Level
November 4th, 2009 Posted in Analyst Picks
After stretching the Fibonacci Retracement lines, it becomes very clear that the pair is testing a very significant support level at the moment. If the pair will breach this level, the next support level looks to be located at 7.60.
• The chart below is the USD/ZAR chart by ForexYard.
• The technical indicators used are the Bollinger Bands, the Relative Strength Index (RSI), the Slow Stochastic and the MACD/OsMA. The Fibonacci Retracement lines are used as well.
• The Slow Stochastic shows a sequence of bearish crosses, and has recently located below the 20 line. This indicates that the pair’s downtrend could extend.
• The MACD provides a clear bearish signal as a bearish cross has recently taken place. The MACD is pointing directly down, strengthening the bearish indication.
• The pair is currently traded around the 50% line located at the 7.74 level. It seems that if the pair will breach the 7.725 level, a sharp drop could take place with potential to reach the 7.60 level – the 38.2% line, the next significant support level.
• The RSI is currently located near the 30 line. If the RSI will drop below this line, this will state that the pair has reached the Over-Sold zone, and could put extra bearish pressure on the pair.
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Tags: dollar, Forex, Forex Trading, fx, FX trading, greenback, USD, zar. usd/zar
