
March 4 (Reuters) - Friday's dollar rally dealt the rand a blow and damaged the underlying USD/ZAR bear trend, and despite Trump's international trade policy unsettling the broader market on Tuesday there are chart warnings of a potential ZAR recovery.
South African growth numbers for the fourth quarter were in line with expectations and an upward revision to quarter three data may have pulled USD/ZAR a little lower early on Tuesday.
There are concerns over the South African budget delay and investor sentiment towards the rand could deteriorate.
External factors will continue to dominate USD/ZAR drivers and increasing chances of a trade war could undermine risk sentiment.
However, USD/ZAR charts are suggesting there might be potential for a resumption of the January 13-February 24 bear trend.
The daily Ichimoku cloud has caused the dollar problems and a small pullback from the top, currently 18.6781, has sapped bullish momentum and the relative strength indicator is falling.
A falling weekly cloud and a below market late June cloud twist might begin to exert bearish pressure on the dollar. USD/ZAR is also stalling badly on the monthly chart with January and February doji candles highlighting market indecision and potential for a direction change.