USDZAR bulls struggle at key Fibo barrier
The pair continues to struggle at key Fibo barrier at 14.75 (61.8% of 15.69/13.23) and on track for the fourth failure to clearly break higher in one week.
Series of daily candles with long upper shadows warns that bulls might be running out of steam, with south-turning daily momentum adding to negative signals.
Daily MA’s are still in full bullish setup, however, Mon/Tue probes below rising 10SMA, although short-lived and contained by 20SMA, also warn.
Repeated failure at 14.75 would keep the price in extended congestion, with the action above rising 10SMA needed to keep bullish bias.
Return below 10SMA will generate initial bearish signal, but extension and close below 20SMA (14.44) is needed to confirm reversal and expose a cluster of daily MA supports at 14.32/15 zone.
Eventual clear break of 14.75 barrier would expose barriers at 15.05/11 (9 Oct high / Fibo 76.4% of 15.69/13.23).
Res: 14.75; 14.89; 15.05; 15.11
Sup: 14.65; 14.58; 14.50; 14.32