USDZAR has a bearish bias in the near term as the flow is back to the downside following the break below the upward sloping channel that was standing since March 27. The price plunged more than 5% in the previous couple of days and printed a fresh nine-month low at 12.51.
Today, the pair is making a timorous recovery but in case of further losses, the price could test the 12.31 support level.
As long as USDZAR remains below the rising channel the downward momentum holds. However, a run back above the lower boundary of the channel could push the price towards the 13.24 resistance barrier.
In the short to medium-term timeframe (daily chart), the picture is negative as the MACD and the RSI technical indicators are holding in the bearish area. The MACD oscillator is strengthening its bearish state and is moving beneath the zero and trigger lines, whilst the RSI indicator bounced off the 30 level and is slightly pointing north. The market is also below the 50, 100 and 200-period simple moving averages.
