Skip to Content
News & Analysis at your fingertips.

We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site. See our updated Privacy Policy here.

Free Trading Guides
Please try again

Live Webinar Events


Economic Calendar Events


Notify me about

Live Webinar Events
Economic Calendar Events






More View More
USD/ZAR – US Dollar Continues Building Powerful Pattern vs SA Rand

USD/ZAR – US Dollar Continues Building Powerful Pattern vs SA Rand

What's on this page

USD/ZAR Highlights:

  • USD/ZAR wedge continues to develop
  • Breakout in-line with other $/EM pairs looks probable

USD/ZAR wedge continues to develop

USD/ZAR price action remains ho-hum in the near-term as volatility declines during the process of building a high-level wedge. What is meant by ‘high-level’ is that the retracement from the Q1 run has been quite shallow, a bullish development indeed.

It could take some more time for the pattern to fully develop, as has been said a few times recently, but worth mentioning again as the time it takes to get from the beginning stage of a pattern to the actual trigger signal can seem like a long time. The bottom line is patience may be needed (maybe not).

A trigger will come on a break of the top-side trend-line (around 19 at this time), with a crossing of 19.34 as a full-on breakout. In the event of a breakout a move to above 20 or higher could be in the works quickly. There has been a lot of USD pressure on EMs since the coronavirus started, and another round could be in the works against not only ZAR, but BRL, RUB, MXN, TRY, and others.

This makes watching those other currencies important as well, as they could give indications as to whether we see USD/ZAR thrust powerfully higher, or if possibly some relief may be on the way for ZAR and the EM space.

For now, just looking at the situation with the Rand, keep close tabs on how the development of the wedge plays out. A hard drop through 18.02 and then 17.76 would be a blow to the bullish thesis and could see a sizable chunk of the Q1 up-move reversed. Otherwise, things will continue to look neutral to bullish.

USD Forecast
USD Forecast
Recommended by Paul Robinson
Check out the Mid-Q1 USD Forecast
Get My Guide

USD/ZAR Daily Chart (wedge continues to build)

USD/ZAR daily chart, wedge continues to build

USD/ZAR Chart by TradingView

Resources for Forex Traders

Whether you are a new or experienced trader, we have several resources available to help you; indicator for tracking trader sentiment, quarterly trading forecasts, analytical and educational webinars held daily, trading guides to help you improve trading performance, and one specifically for those who are new to forex.

---Written by Paul Robinson, Market Analyst

You can follow Paul on Twitter at @PaulRobinsonFX

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.