USD/ZAR: downside reversal

USD/ZAR 19.116 Key Obstacle!

The currency pair increased within an up channel formation. It has climbed as much as 19.245 and now it has turned to the downside, dropping also below the uptrend line. Technically, the uptrend line represented a downside obstacle.

Dropping below it signaled that the uptrend could be over and that we may have a reversal. Still, it's premature to talk about something like this as long as it stays above the former low of 19.116 (downside obstacle).

USD/ZAR Trading Conclusion!

Dropping and closing below 19.116 may announce more declines. This scenario could help the sellers to catch a larger drop.