While the dollar has made some fairly impressive gains on the rand as of late, the pair may be in store for a downward correction according to technical indicators. Since the 3rd of this month, the USD/ZAR has gone up over 1700 pips, and is currently trading around the 6.7660 level.
At the same time, the 8-hour chart is showing signs of an impending bearish move. Both the Williams Percent Range and RSI are overbought, while a bearish cross has already formed on the Slow Stochastic. Traders may want to go short in their positions, as the pair may drop to the 6.7000 level in the near future.
Other relevant articles you may like
Dan Eduard is a Market Strategist with ForexYard. His addition to the ForexYard team has brought a unique new perspective to our clients. Dan's ability to compare and contrast trans-national issues with events in the market is uncanny and many clients so far have used his advice to make leaps and bounds in their trading strategies. He has been published on the ForexYard Trading Blog and affiliate websites. He carries a BA in Political Science and an MA in History.
