USD/ZAR Price Analysis: Off two-month lows, Bullish RSI divergence on 4H

• USD/ZAR's 4-hour chart shows a bull divergence of RSI. 
• The daily chart suggests, a bounce, if any, may be short-lived. 

USD/ZAR pair is sidelined near 17.40 at press time, having hit a low of 17.32 on Tuesday. That was the lowest level since March 27. 

The pair could see a stronger bounce as the 4-hour chart shows a bullish divergence of the relative strength index. The pattern appears when the indicator forms higher lows as opposed to lower lows on price and is considered an early warning of an impending bullish reversal. 

On the higher side, the 50-hour simple moving average is the key resistance. The pair has charted lower highs along that technical line throughout the recent downtrend from 18.60 to 17.32. As of writing, the 50-hour SMA is located at 17.53. 

While the 4-hour chart is calling a bounce, the daily chart remains biased bearish. Tuesday's 1.37% drop revived the negative outlook put forward by the contracting triangle breakdown confirmed on May 20 and invalidated the bullish inverted hammer-like pattern created on May 22. Put simply, gains, if any, could be short-lived. On the lower side, major support is seen at 16.68. 

4-hour chart

Trend: Bearish

Technical levels

R3 17.949
R2 17.809
R1 17.6043
PP 17.4643
S1 17.2595
S2 17.1196
S3 16.9148