{"id":2809,"date":"2021-01-22T08:22:18","date_gmt":"2021-01-22T08:22:18","guid":{"rendered":"https:\/\/youtrading.com\/en\/?p=2809"},"modified":"2021-01-22T17:02:18","modified_gmt":"2021-01-22T17:02:18","slug":"usdzar-technical-analysis-trapped-inside-falling-price-channel","status":"publish","type":"post","link":"https:\/\/youtrading.com\/en\/usdzar-technical-analysis-trapped-inside-falling-price-channel\/","title":{"rendered":"USDZAR Technical Analysis &#8211; Trapped inside falling price channel"},"content":{"rendered":"\t\t<div data-elementor-type=\"wp-post\" data-elementor-id=\"2809\" class=\"elementor elementor-2809\" data-elementor-post-type=\"post\">\n\t\t\t\t\t\t<div class=\"elementor-inner\">\n\t\t\t\t<div class=\"elementor-section-wrap\">\n\t\t\t\t\t\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-730a874 elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"730a874\" data-element_type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t\t\t<div class=\"elementor-row\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-4cce70a\" data-id=\"4cce70a\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-column-wrap elementor-element-populated\">\n\t\t\t\t\t\t\t<div class=\"elementor-widget-wrap\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-453622f elementor-widget elementor-widget-text-editor\" data-id=\"453622f\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t<div class=\"elementor-text-editor elementor-clearfix\">\n\t\t\t\t<p>The US dollar continues to lose ground against the South African rand currency as the pair looks set to post its tenth straight month of losses on the foreign exchange market. Overall weakness in the US dollar index has been the main driving force behind the decline in the <a href=\"https:\/\/bit.ly\/3sQDJqU\" target=\"_blank\" rel=\"noopener\">USDZAR<\/a>.<\/p><p>Following US Treasury Secretary Janet Yellen\u2019s testimony earlier this week the <a href=\"https:\/\/bit.ly\/37m9dMU\" target=\"_blank\" rel=\"noopener\">US dollar index<\/a> has fallen sharply from a one-month trading high. Emerging market currencies, such as the South Africa rand, have performed extremely well against the greenback.<\/p><p>The rand started to falter against the greenback at the start of the year due a new strain of the COVID-19 virus being detected in South Africa, although weakness in the US dollar has caused the pair to reverse course.<\/p><p>The ongoing high infection rate of COVID-19 has been particularly brutal on the South African economy, which was already faltering prior to the pandemic. Recent data has showed that the mining sector in South Africa has taken a hit, however, optimism is returning as the vaccine rollout starts to take effect in Africa\u2019s second-largest economy.<\/p><p>Weakness in the South African mining sector has also been offset by the <a href=\"http:\/\/bit.ly\/2ZsFzPL\" target=\"_blank\" rel=\"noopener\">price of gold<\/a>, which has helped miners maintain profitability. Gold staged a notable rally this week, which also helped underpin the bid-tone towards the rand.<\/p><p>Yesterday, the South African economy released retail sales data which a -4.0 percent year-on-year decline during the month of November. The Reserve Bank of South Africa kept rates unchanged yesterday which placed further pressure on the USDZAD pair as they talked-up the domestic and global economy.<\/p><p>Unless <a href=\"https:\/\/bit.ly\/3mBrxpW\" target=\"_blank\" rel=\"noopener\">US bond yields<\/a> start to rise and inflationary pressures start to return to the US economy then further downside in the USDZAR pair is expected, as traders and investors factor in continued US economic weakness and more stimulus.<\/p><p><strong>USDZAR Short-Term Technical Analysis<\/strong><\/p><p>The four-hour time frame shows that the USDZAR pair is under heavy technical pressure while trading below the $14.80 level. This is a key former breakout area, and an area that bulls need to defend to stop the USDZAR pair falling towards the $14.00 area.<\/p><p>Price has also broken beneath the bottom of a large falling wedge pattern, Typically, these patterns are bullish, so it underscores just how bearish the USDZAD pair is at the moment.<\/p>\t\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-c3e19b1 elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"c3e19b1\" data-element_type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t\t\t<div class=\"elementor-row\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-dbee910\" data-id=\"dbee910\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-column-wrap elementor-element-populated\">\n\t\t\t\t\t\t\t<div class=\"elementor-widget-wrap\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-0e20b82 elementor-widget elementor-widget-image\" data-id=\"0e20b82\" data-element_type=\"widget\" data-widget_type=\"image.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t<div class=\"elementor-image\">\n\t\t\t\t\t\t\t\t\t\t\t\t<img decoding=\"async\" width=\"624\" height=\"300\" src=\"https:\/\/youtrading.com\/en\/wp-content\/uploads\/2021\/01\/USDZAR-4H.png\" class=\"attachment-large size-large wp-image-2812\" alt=\"\" \/>\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-5725ac1 elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"5725ac1\" data-element_type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t\t\t<div class=\"elementor-row\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-543958a\" data-id=\"543958a\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-column-wrap elementor-element-populated\">\n\t\t\t\t\t\t\t<div class=\"elementor-widget-wrap\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-8da96d1 elementor-widget elementor-widget-text-editor\" data-id=\"8da96d1\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t<div class=\"elementor-text-editor elementor-clearfix\">\n\t\t\t\t<p>Source by ActivTrader.<\/p>\t\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-00a47a4 elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"00a47a4\" data-element_type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t\t\t<div class=\"elementor-row\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-1da25c5\" data-id=\"1da25c5\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-column-wrap elementor-element-populated\">\n\t\t\t\t\t\t\t<div class=\"elementor-widget-wrap\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-f414d5d elementor-widget elementor-widget-text-editor\" data-id=\"f414d5d\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t<div class=\"elementor-text-editor elementor-clearfix\">\n\t\t\t\t<p>The only bright spot for bulls at the moment is the positive MACD price divergence on the mentioned time frame, which extends up towards the $15.00 level. This may be an area to watch out for another sharp reversal or a potential recovery back towards $15.20.<\/p><p><strong>USDZAR Medium-Term Technical Analysis<\/strong><\/p><p>Looking at the daily and weekly time frame, the central feature remains a large falling price channel, which the USDZAR has been trapped inside since March of last year.<\/p>\t\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-69fc203 elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"69fc203\" data-element_type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t\t\t<div class=\"elementor-row\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-2b23a6f\" data-id=\"2b23a6f\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-column-wrap elementor-element-populated\">\n\t\t\t\t\t\t\t<div class=\"elementor-widget-wrap\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-cfeb111 elementor-widget elementor-widget-image\" data-id=\"cfeb111\" data-element_type=\"widget\" data-widget_type=\"image.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t<div class=\"elementor-image\">\n\t\t\t\t\t\t\t\t\t\t\t\t<img decoding=\"async\" width=\"624\" height=\"300\" src=\"https:\/\/youtrading.com\/en\/wp-content\/uploads\/2021\/01\/USDZAR-1D.png\" class=\"attachment-large size-large wp-image-2813\" alt=\"\" \/>\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-5146274 elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"5146274\" data-element_type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t\t\t<div class=\"elementor-row\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-a82a895\" data-id=\"a82a895\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-column-wrap elementor-element-populated\">\n\t\t\t\t\t\t\t<div class=\"elementor-widget-wrap\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-5672775 elementor-widget elementor-widget-text-editor\" data-id=\"5672775\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t<div class=\"elementor-text-editor elementor-clearfix\">\n\t\t\t\t<p>Source by ActivTrader.<\/p>\t\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-c2b3ff9 elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"c2b3ff9\" data-element_type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t\t\t<div class=\"elementor-row\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-40d8c0e\" data-id=\"40d8c0e\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-column-wrap elementor-element-populated\">\n\t\t\t\t\t\t\t<div class=\"elementor-widget-wrap\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-8f8b801 elementor-widget elementor-widget-text-editor\" data-id=\"8f8b801\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t<div class=\"elementor-text-editor elementor-clearfix\">\n\t\t\t\t<p>According to technical analysis the price channel is located between the $14.00 and $15.80 levels. A technical breakout of $2.00 should take place once price definitively moves either sides of the channel.<\/p><p>Due to the ongoing negative price trend and short-term technicals it would seem that bears are preparing to take the USDZAR pair towards the bottom of the price channel.<\/p>\t\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t","protected":false},"excerpt":{"rendered":"<p>The US dollar continues to lose ground against the South African rand currency as the pair looks set to post its tenth straight month of losses on the foreign exchange market. Overall weakness in the US dollar index has been the main driving force behind the decline in the USDZAR. Following US Treasury Secretary Janet [&hellip;]<\/p>\n","protected":false},"author":4,"featured_media":2810,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[5,9],"tags":[45,28,215,180,40,226,140],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v17.6 (Yoast SEO v20.11) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>USDZAR Technical Analysis - Trapped inside falling price channel - Youtrading UK<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/youtrading.com\/en\/usdzar-technical-analysis-trapped-inside-falling-price-channel\/\" \/>\n<meta property=\"og:locale\" content=\"en_GB\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"USDZAR Technical Analysis - Trapped inside falling price channel\" \/>\n<meta property=\"og:description\" content=\"The US dollar continues to lose ground against the South African rand currency as the pair looks set to post its tenth straight month of losses on the foreign exchange market. Overall weakness in the US dollar index has been the main driving force behind the decline in the USDZAR. Following US Treasury Secretary Janet [&hellip;]\" \/>\n<meta property=\"og:url\" content=\"https:\/\/youtrading.com\/en\/usdzar-technical-analysis-trapped-inside-falling-price-channel\/\" \/>\n<meta property=\"og:site_name\" content=\"Youtrading UK\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/YouTradingEnglish\/\" \/>\n<meta property=\"article:published_time\" content=\"2021-01-22T08:22:18+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2021-01-22T17:02:18+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/youtrading.com\/en\/wp-content\/uploads\/2021\/01\/sincerely-media-2hWFCRpQe_4-unsplash-1.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"1080\" \/>\n\t<meta property=\"og:image:height\" content=\"538\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Nathan Batchelor\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Nathan Batchelor\" \/>\n\t<meta name=\"twitter:label2\" content=\"Estimated reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"3 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\/\/youtrading.com\/en\/usdzar-technical-analysis-trapped-inside-falling-price-channel\/#article\",\"isPartOf\":{\"@id\":\"https:\/\/youtrading.com\/en\/usdzar-technical-analysis-trapped-inside-falling-price-channel\/\"},\"author\":{\"name\":\"Nathan Batchelor\",\"@id\":\"https:\/\/youtrading.com\/en\/#\/schema\/person\/88ce8e6688d6c690a83e6cbeee2eccab\"},\"headline\":\"USDZAR Technical Analysis &#8211; 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Overall weakness in the US dollar index has been the main driving force behind the decline in the USDZAR. 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