ZARUSD closes within prior day's range after lackluster session
South African Rand/US Dollar (ZARUSD) Technical Analysis Report for Feb 14, 2020 | by Techniquant Editorial Team
ZARUSD ended the week 1.06% higher at 0.0670 after edging higher 1 pip (0.15%) today. Closing within the previous day's range, prices missed to decisively move beyond the prior day's trading range in a lackluster session.
Daily Candlestick Chart (ZARUSD as at Feb 14, 2020):
Friday's trading range has been 6 pips (0.9%), that's far below the last trading month's daily average range of 9 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 ZARUSD.
After moving lower in the previous session, the FX pair managed to close higher but below the prior day's open, forming a bullish Harami Candle. Additionally, one bullish candlestick pattern matches today's price action, the Tweezer Bottom.
Prices are trading close to the key technical support level at 0.0665 (S1). Unable to break through the key technical resistance level at 0.0672 (R1), the market closed below it after spiking up to 0.0674 earlier during the day. The failure to close above the resistance could increase that levels importance going forward. After having been unable to move lower than 0.0668 in the previous session, the pair found buyers again around the same price level today at 0.0668. The last time this happened on Monday, ZARUSD gained 1.05% on the following trading day.
The forex pair shows strength in the short-term supported by its long-term uptrend with only the medium-term trend being bearish.
Among the five market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Tweezer Bottom" stand out. Its common bullish interpretation has been confirmed for ZAR/USD. Out of 94 times, ZARUSD closed higher 55.32% of the time on the next trading day after the market condition occurred.