USDZAR finds buyers at key support level
US Dollar/South African Rand (USDZAR) Technical Analysis Report for Feb 14, 2020 | by Techniquant Editorial Team
USDZAR finished the week -1.08% lower at 14.9171 after losing 371 pips (-0.25%) today. Closing within the prior day's range, prices failed to decisively move beyond the previous day's trading range in a lackluster session.
Daily Candlestick Chart (USDZAR as at Feb 14, 2020):
Friday's trading range has been 1425 pips (0.95%), that's below the last trading month's daily average range of 1875 pips. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for USDZAR.
After trading down to 14.8316 earlier during the day, the FX pair bounced off the key technical support level at 14.8721 (S1). The failure to close below the support might increase that levels significance as support going forward. When prices bounced off a significant support level the last time on February 5th, USDZAR gained 1.11% on the following trading day. Prices are trading close to the key technical resistance level at 15.0401 (R1). After having been unable to move lower than 14.8223 in the prior session, the pair found buyers again around the same price level today at 14.8316.
The forex pair shows weakness in the short-term (in accordance with its long-term downtrend) with only the medium-term trend still being bullish.
Among the three market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bounced off Technical Support S1" stand out. Its common bullish interpretation has been confirmed for USD/ZAR. Out of 551 times, USDZAR closed higher 50.45% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the long side has been after 10 trading days, showing a win rate of 52.63% with an average market move of 0.26%.
With five out of the seven Major FX Pairs closing lower today, the ones that stand out on the negative side are USDCAD losing -0.12% and EURUSD closing -0.08% lower. On the flipside the best performers have been USDCHF closing 0.28% higher and GBPUSD gaining 0.02%. Looking at the other Minor FX Pairs and Crosses, the winners of the day have been USDSEK surging 0.51% and EURSEK closing 0.43% higher. The worst performers of the day have been EURHUF tanking -0.65% and USDHUF closing -0.58% lower. Read more