RAND TALKING POINTS & ANALYSIS

• Recovering South African current account encouraging for ZAR.
• NFP to determine short-term guidance.
• USD/ZAR bears eye rising wedge breakout.

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USD/ZAR FUNDAMENTAL BACKDROP

Later today, US consumer credit change close out the trading session and could provide some short-term volatility.

TECHNICAL ANALYSIS

USD/ZAR DAILY CHART

Chart prepared by Warren Venketas, TradingView

The daily USD/ZAR chart now looks to approach the apex of the rising wedge formation (dashed black line) coinciding with wedge support. A confirmation candle close below could spark further downside but I would like to see a close below the 200-day moving average (blue) as well. The key inflection zone around the 18.7759 level has proved to be a potential turning point in the past which supports the indecision by traders to favor any particular directional bias as shown by the Relative Strength Index (RSI). In summary, an NFP beat could negate the rising wedge while a significant miss could bring the 18.5000 psychological support handle into consideration once again.

Resistance levels:

• 19.0000
• 18.7759/50-day MA (yellow)

Support levels:

• Wedge support/200-day MA (blue)
• 18.5000

https://www.dailyfx.com/news/forex-zar-price-update-rand-capitalizes-on-weaker-usd-wv-20231207.html