USD/ZAR Price Analysis: Overbought RSI tests bulls above $16.00

• USD/ZAR retreats from intraday high, stays around yearly top.
• 61.8% Fibonacci retracement limits immediate downside, July 2020 lows challenge bulls.
• RSI conditions challenge further upside but bullish trend remains intact.

USD/ZAR stays firmer around $16.20, despite the recent pullback from intraday high, amid early Tuesday morning in Europe.

In doing so, the South African currency (ZAR) remains on the back foot around the lowest levels in a year, flashed on Friday, while staying above 61.8% Fibonacci retracement (Fibo.) level of August 2020 to June 2021 fall, around $16.10.

However, the overbought RSI line hints at the quote’s pullback move from a horizontal area comprising July 2020 lows, near $16.35-40.

Adding to the upside filters is the October 2020 peak of $16.75 and the $17.00 threshold.

On the contrary, the pair’s pullback below the key Fibo. level support of $16.10 will need validation from the $16.00 round figure to aim for a late November 2020 swing high near $15.70.

It should be noted that the USD/ZAR keeps the bullish trend until the quote stays above August 2021 top near $15.40.

USD/ZAR: Daily chart

Trend: Further upside expected