• USD/ZAR struggles to extend the bounce off monthly support line, stays below 100-SMA.
• Steady RSI hints at further downside towards 200-SMA.
• Fortnight-long resistance line, yearly top also challenge buyers.

USD/ZAR consolidates recent losses around $16.00, up 0.26% intraday ahead of Friday’s European session.

The South African currency (ZAR) pair dropped below an ascending support line from mid-November the previous day before bouncing off $15.84.

The recovery moves, however, remain below the 100-SMA amid steady RSI conditions, which in turn suggests another attempt to break the stated support line near $15.87.

Following that, the 200-SMA level of $15.70 will be important as a clear downside break of the same will direct USD/ZAR sellers towards the early November peaks near $15.50.

Meanwhile, recovery moves past 100-SMA level of $16.00 will be tested by $16.15 and an ascending resistance line from December 03, near $16.25.

Also acting as an upside filter is the 2021 peak, marked in November, around $16.36, a break of which will direct USD/ZAR bulls towards $1,700 and then to September 2020 peak close to $17.40.

USD/ZAR: Four-hour chart

Trend: Further weakness expected