USD/ZAR Price Analysis: South African Rand weakens to over 2-week lows against the USD

USD/ZAR regains positive traction amid sustained buying around the USD.

The near-term technical set-up support prospects for a further move up. 

The USD/ZAR pair jumped to over two-week tops in the last hour, with bulls making a fresh attempt to build on the momentum beyond the 19.00 round-figure mark.

The pair quickly reversed an early dip to the 18.65 region and turned higher for the second consecutive session on Tuesday – also marking its sixth day of a positive move in the previous seven.

The uptick was sponsored by sustained buying around the US dollar, which remained well supported by persistent worries about the economic fallout from the coronavirus pandemic.

This coupled with a historic fall in crude oil prices weighed on investors’ sentiment and underpinned the greenback’s safe-haven status, assisting the pair to break out of a three-day-old trading range.

USD/ZAR 1-hourly chart


From a technical perspective, the pair finally seems to have confirmed a near-term bullish breakout and now seems poised to extend the trajectory towards challenging record highs, around the 19.35 region.

Some follow-through strength beyond mid-19.00s might be seen as a fresh trigger for bulls and pave the way for a further near-term appreciating move towards the key 20.00 psychological mark.

Technical levels to watch

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