BofA update shows where active managers are putting money
USD/ZAR is currently trading around 17.7482, showing signs of fading bullish momentum after a sharp spike toward 18.50 earlier in the week. Price action has since reversed, closing below both the 15-day and 20-day simple moving averages. This drop below the short-term moving averages suggests a potential shift back toward bearish pressure.
Key Technical Observations:
- The rally above 18.00 was short-lived, with a sharp rejection candle forming around the 18.50 level—a strong sign of buyer exhaustion.
- Both moving averages are starting to roll over, and price is now holding just below them, reinforcing a bearish tilt.
- This current area near 17.75 is a key pivot zone that has acted as support/resistance multiple times over the past few months.
Key Levels to Watch:
- Resistance: 17.82 (20-day moving average), 18.10, then 18.50
- Support: 17.60 (minor support), followed by 17.20 (July low)
- Breakout Level: 18.00 remains a psychological and technical barrier
Bias: Bearish Reversal in Progress
The failure to hold above 18.00 combined with the close below both SMAs, indicates a likely shift back to downside pressure. A break below 17.60 would confirm this reversal and open the path toward the 17.20–17.00 support zone. However, a reclaim of 18.00 would be needed to revive bullish sentiment and challenge the recent highs.
Momentum has flipped in favour of sellers, and the ZAR may continue to strengthen in the short term unless bulls step in around 17.60.
