FX.co ★ sabrina.fay | USD/ZAR

Hello traders, Sellers on the USD/ZAR pair continued to exert active pressure on the price during the past trading week, resulting in a breakdown of the local support level around 16.900. Volumes gradually increased throughout this action, remaining at relatively high levels, indicating an accumulation of short positions by large bears. Moreover, the fact that the price closed below the 16.900 level paves the way for a new wave of selling. Overall, I prioritize selling, so I will be looking for a small pullback and a test of the resistance level at 16.900 on the USD/ZAR pair in the near future. This would be followed by a bounce off this level and a resumption of the downward movement towards the target around 16.750.