The US Dollar has been confined in a channel down against the South African Rand during the past two months. Its lower boundary was tested early in this session, when the rate was unable to move past the weekly S3 located at 12.26. This low volatility suggests that the pair might reverse from this medium-term pattern and initiate a new wave up. The steepness of two more junior patterns likewise demonstrate that the Greenback has remained near their upper boundaries, thus pointing to a possible upside breakout. The nearest resistance is set by the 55– and 100-hour SMAs circa 12.50. This area is likewise reinforced by the weekly S2 and the 200-hour SMA. Thus, the Greenback could hinder near this territory for a while prior to moving towards the upper boundary of the senior channel. In case the southern barrier does not hold, no support that could halt the pair is located nearby.
