The USD/ZAR pair was into a corrective phase after an important leg higher. The pair has signaled that the retreat is over and that the price could jump higher again. In the short term, we need confirmation before taking action.
The USD is still strong even if the US NFP has come in worse than expected on Friday. The greenback received a helping hand from the US Unemployment Rate, Average Hourly Earnings, ISM Services PMI, Unemployment Claims, and from the ADP Non-Farm Employment Change during last week.
The US is to release its inflation data and the FOMC Meeting Minutes on Wednesday. Better than expected US data during the week could lift the USD/ZAR currency pair.
USD/ZAR Technical Analysis!
As you can see on the H4 chart, USD/ZAR has registered only a false breakdown with great separation below the 38.2% retracement level and now it tries to stabilize above the 23.6% and above the 14.962 weekly pivot point.
A new higher high, a bullish closure above 15.018 and a valid breakout through the 150% Fibonacci line (descending dotted line) may announce a potential further growth. Now, the pair has dropped to retest the pivot point and the 23.6% retracement level.
Technically, its failure to take out the 14.839 support signaled that the bulls could take full control again in the short term.
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