KTM FX Daily: South African Rand overbought
USDZAR may be running into an area of support defined by the following:
- 200MA Weekly and 50MA Monthly located at 14.40.
- A triple bottom on the daily chart and a break out higher through a beautiful rectangle pattern.
- The daily indicators are suggesting upward momentum on top of it, weekly indicators turned positive.
- 2-year ascending trendline still intact.
Immediate resistance is located at 15.70, a decisive breakout above needed to outperform further in the near term aiming at 16.30 and 17 levels.
Since March ZAR strengthened nearly 25% led by the positive risk-sentiment. On Thursday finally, the trend has reversed as rising numbers of COVID daily infections in South Africa.
COVID-19: 20,999 new cases and 441 new deaths in South Africa, according to SACoronavirus. As of today, the cumulative total of COVID-19 cases identified in South Africa is 1 170 590 with 20 999 new cases identified since the last report.
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