• USD/ZAR breaks three-week-old support line, extends pullback from yearly peak.
• Bears eye six-week-long ascending trend line joins monthly horizontal area.
• 200-SMA, oversold RSI conditions to challenge further downside.

USD/ZAR take offers around $15.80, down 0.62% intraday during early European morning on Wednesday.

The South African currency (ZAR) pair has been on the back foot after refreshing the yearly top on Friday. That said, the quote recently broke an ascending support line from November 09, suggesting further weakness.

However, a convergence of a bit broader rising trend line and the horizontal area comprising multiple levels marked from early November limit the pair’s declines around $15.45-50 amid oversold RSI conditions. Also acting as a downside filter is the 200-SMA level of $15.30.

Meanwhile, corrective pullback remains elusive below the stated support-turned-resistance line near $15.85, a break of which will aim to regain the $16.00 threshold.

During the quote’s upside past $16.00, USD/ZAR buyers aim for $16.25 before challenging the 2021 peak of $16.36.

USD/ZAR: Four-hour chart

Trend: Further weakness expected