- USD/ZAR is looking to dive out of a bullish channel on the hourly chart.
- A breakdown would open the doors for a re-test of recent lows.
USD/ZAR’s recovery from an eight-month low of 15.2092 reached Monday is at risk of being aborted as the pair is teasing a rising channel breakdown on the hourly chart.
At the time of writing, the pair is flirting with the lower end of the ascending channel created in the past 48 hours or so. A breakdown, if confirmed, would imply an end of the corrective bounce and shift risk in favor of a re-test of 15.2029.
The hourly chart MACD histogram has already crossed into a bearish territory below zero. Further, the 14-hour relative strength index has fallen back below 50.
As such, the ascending channel breakdown cannot be ruled out.
Tuesday’s high of 15.7043 is the level to beat for the bulls. A daily close above that level would shift the focus to the Sept. 18 low of 16.0836.