Technical Analysis - USDZAR

Technical Analysis - USDZAR

A surge in the US Dollar has seen the local unit break above it’s key short term resistance of 12.47, reaching a 2018 high of 12.69 late in the uS equity trading session.

The upward momentum remains strong with the price above the 20 and 50-day simple moving averages and the candle structure reflecting the bullish sentiment.

The Relative Strength Index (RSI) is now trading in overbought territory, with a reading of 71 however we could see an overbought reading remain in place over the medium term.

Ahead, a key test for the pair will be the 200-day simple moving average (currently at 12.81) as well as the prior support/resistance zone.

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