USDZAR closes higher for the 4th day in a row
US Dollar/South African Rand (USDZAR) Technical Analysis Report for Jul 31, 2020 | by Techniquant Editorial Team
Moving higher for the 4th day in a row, USDZAR finished the month -1.63% lower at 17.0710 after surging 3127 pips (1.87%) today. This is the biggest single-day gain in over a month. The last time we've seen such an unusually strong single-day gain on June 11th, USDZAR actually lost -0.74% on the following trading day. Today's close at 17.0710 marks the highest recorded closing price since July 7th. The bulls were in full control today, moving the market higher throughout the whole session. Closing above Thursday's high at 16.9505, the FX pair confirmed its breakout through the previous session high after trading up to 1513 pips above it intraday.
Daily Candlestick Chart (USDZAR as at Jul 31, 2020):
Friday's trading range has been 4131 pips (2.46%), that's far above the last trading month's daily average range of 2517 pips. Weekly volatility is also higher, being above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for USDZAR.
One bullish candlestick pattern matches today's price action, the White Candle.
The forex pair managed to close above the 50-day moving average at 16.9926 for the first time since May 19th.
USD/ZAR shows strength in the short-term supported by its long-term uptrend with only the medium-term trend being bearish.
As prices are trading close to July's high at 17.3849, upside momentum could speed up should the pair mark new highs for the month.
Among the 10 market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Very Strong Up Move" stand out. Though it is usually interpreted as bullish, it has actually shown to be bearish for USD/ZAR. Out of 154 times, USDZAR closed lower 56.49% of the time on the next trading day after the market condition occurred.
With five out of the seven Major FX Pairs closing lower today, the ones that stand out on the negative side are NZDUSD losing -1.04% and AUDUSD closing -0.72% lower. On the flipside the best performers have been USDJPY closing 1.12% higher and USDCHF gaining 0.48%. Looking at the other Minor FX Pairs and Crosses, the winners of the day have been GBPZAR surging 1.79% and TRYJPY closing 1.54% higher. The worst performers of the day have been NZDCAD tanking -1.15% and NZDHKD closing -1.05% lower. Read more