#USDZAR @ 19.2305 drops to the lowest levels in two weeks during four-day downtrend., @nehcap view: Further downside expected (Pivot Orderbook analysis)

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• USD/ZAR drops to the lowest levels in two weeks during four-day downtrend.
• Bears cheer downside break of 100-SMA, previous support line from mid-May.
• 200-SMA can prod South African Rand buyers amid oversold RSI conditions.
• South Africa Gross Domestic Product appears the key data to watch for clear directions.

The pair currently trades last at 19.2305.

The previous day high was 19.5676 while the previous day low was 19.2211. The daily 38.2% Fib levels comes at 19.3534, expected to provide resistance. Similarly, the daily 61.8% fib level is at 19.4352, expected to provide resistance.

USD/ZAR bears stay in the driver’s seat for the fourth consecutive day after it refreshed an all-time high in the last week. That said, the South African Rand (ZAR) pair drops to the fresh low in a fortnight while taking offers to 19.21 ahead of the South After Gross Domestic Product (GDP) release, scheduled for publishing at 09:30 AM GMT on Tuesday.

Although the GDP data is less likely to allow the USD/ZAR sellers to keep the reins, technical details are favoring further downside of the quote.

That said, a clear break of the 100-SMA and a three-week-old support-turned-resistance adds strength to the bearish bias about the USD/ZAR pair. The same direct the sellers toward the mid-May low surrounding the 19.00 round figure.

However, the oversold RSI conditions appear to challenge the USD/ZAR bears around the 200-SMA level of 18.94.

Following that, an upward-sloping support line from late March, close to 18.62 at the latest, appears the last defense of the USD/ZAR buyers.

On the flip side, the USD/ZAR recovery needs to cross the previous support line and a one-week-old descending resistance line, respectively near 19.33 and 19.39.

Should the quote manages to remain firmer past 19.39, the 19.40 round figure and the 100-SMA level of around 19.43 may challenge the USD/ZAR bulls.

Overall, USD/ZAR is likely to decline further but the South African GDP has a history of disappointing optimists and the same prods the pair sellers.

Trend: Further downside expected

Technical Levels: Supports and Resistances

USDZAR currently trading at 19.2328 at the time of writing. Pair opened at 19.2627 and is trading with a change of -0.16 % .

The pair is trading below its 20 Daily moving average @ 19.3449, above its 50 Daily moving average @ 18.6583 , above its 100 Daily moving average @ 18.2886 and above its 200 Daily moving average @ 17.9075

The previous day high was 19.5676 while the previous day low was 19.2211. The daily 38.2% Fib levels comes at 19.3534, expected to provide resistance. Similarly, the daily 61.8% fib level is at 19.4352, expected to provide resistance.

Note the levels of interest below:

• Pivot support is noted at 19.1333, 19.0039, 18.7867
• Pivot resistance is noted at 19.4799, 19.697, 19.8264

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