FX.co ★ sabrina.fay | USD/ZAR

USD/ZAR. Good afternoon. Dollar/Rand closed the past week with a bullish candle, but its closing level is practically at the opening level. That is, on the chart it is effectively a doji, which indicates some uncertainty regarding the direction of further movement. At the same time, the pair still remains within the global trend channel, now near its lower boundary, so there is a chance to see a large move to the upside. On the smaller technical picture on the hourly chart, the indicators drew a buy signal by the close, but here it has not been activated, and the pair has returned to the bearish zone of the Bollinger channel. It is just too early to talk about consolidation here, so I continue to look more to the upside, with an approximate target of 16.250-300 in the short term. On the four-hour chart, the indicators are still in the process of forming a buy signal, but it is still too early to talk about that here. The pair is now hovering around the middle Bollinger band, so whichever zone it occupies is most likely where we will go. Within my “wish list” I am more inclined to a move to the upside, but it is hardly worth opening long positions based on this assumption; it is better to wait for more complete confirmation from the technical side.