The American Dollar is strengthening against the South African Rand in a short-term ascending channel.
The pattern started to form two days ago after a sharp appreciation of the Greenback by 1.8%.
Since there were no fundamental events that day, the surge most probably was attributed to combined support level set up by the 55-, 100- and 200-hour SMAs as well as the weekly PP at 12.9962.
At the moment, the currency exchange rate is approaching the channel’s bottom boundary that is backed up by the weekly R2 at 13.2383 and the monthly PP at 13.2254.
The pair is expected to make a rebound and resume the surge with the ultimate goal to reach the weekly R3 located at the 13.3730.