On Wednesday of last week the 21st of June, the USD/ZAR was trading around the 18.30000 ratio in a rather comfortable mode when technical upwards momentum began to not only show signs of brewing but potentially boiling over. The upwards movement of the USD/ZAR seemingly began to hit when Federal Reserve Chairman Jerome Powell began to speak in front of Congress and sounded aggressive once again regarding the potential for interest rate hikes to come.
By Thursday of last week, the USD/ZAR continued to challenge higher values and while it did achieve a low around the 18.31000 ratio, the currency pair started to find stronger buying and began to prove resistance was vulnerable. By the middle of the day on the 22nd the USD/ZAR had climbed over the 18.50000 level and its price velocity was beginning to build speed.
Resistance Levels didn’t show many fights in the USD/ZAR
Late on Thursday a bit of a selloff occurred in the USD/ZAR but the lows around 18.47000 proved short-lived. Within a few hours, the USD/ZAR soon found its value above the 18.60000 ratios, and the currency pair was not done moving higher. By Friday the USD/ZAR hit the 18.78000 level, this before going into the weekend showing an ability to sustain its higher values.
Only a few weeks ago, the USD/ZAR had a much higher value, well above 19.0000. Although the USD/ZAR has moved slightly lower in early trading this morning and is near the 18.70000 mark, traders should remain somewhat suspicious of the Forex pair due to its complicated trading nature over the past year. The upwards trend in the USD/ZAR over the long term cannot be forgotten just because the past few weeks delivered lows, which tested support levels still within the currency pair’s upper realms when a long-term chart is contemplated.
USD/ZAR Short-Term Could Produce Choppy Conditions as Cautious Sentiment Mounts
- Risk-averse trading because of nervous broad market conditions globally could create support for the USD/ZAR to remain durable.
- Traders should watch the 18.70000 ratios now being tested to see if this value is sustained or can be penetrated lower. The door is open for the possibility of choppy trading to ensue over the near term.
- Traders looking for upside price action should also be conservative and not overly ambitious today. A test of a range between 18.65000 and 18.75000 could prove to be a key barometer over the next twenty-four hours.
USD/ZAR Short-Term Outlook:
Current Resistance: 18.73400
Current Support: 18.68600
High Target: 18.82000
Low Target: 18.63100
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