Day traders who are tempted to ignite positions within the USD/ZAR should take a close look at recent technical charts. The conclusion that likely will be drawn is that recent trading within the USD/ZAR has been taking place in a well-practiced value realm that is known, but troublesome. The results from the past week should not make any day trader comfortable; in fact it will be much better to remain alert to the potential of more choppiness. Currently the USD/ZAR is near the 18.67850 ratio.
The USD/ZAR as it starts this week is essentially near value that it began last week with, and like a couple of weeks before a serious amount of price fluctuations have been demonstrated in both directions. Support and resistance levels continue to show ability to cause reversals. While some day traders will continue to look for a meaningful trend, while some speculators may be happy to simply partake in quick hitting trades that have short-term goals while trying to capture limited movements consistently.
Gold is Flying High but the South African Rand Flounders
The USD/ZAR is once again near interesting support levels and trading today and tomorrow should be watched intently. The currency pair has shown the ability to traverse lower, but support levels have consistently emerged and the USD/ZAR has shown a tendency to bounce upwards. Equilibrium in the USD/ZAR continues to be fought over as South Africa deals with domestic issues that are causing nervousness within financial institutions. A rather wide range between 18.45000 and 18.97000 has played out the past two weeks. Gold is trading near highs around 2075.00 USD per ounce as of the writing.
South Africa seems to be constantly running out of money to fund infrastructure, but this is because of government mismanagement and alleged corruption. South Africa has recently announced it will take a large sum of money from China, but if South Africa does not pay pack – which China may be hoping for – the notion that a repayment in gold or another physical resource could be used lingers. The South African government has a nasty habit of neglecting fiscal responsibility and hoping for better days, months and years to develop down the road. The USD/ZAR has interesting short-term support and resistance in sight, and technical traders should be nimble.
USD/ZAR Speculation as Shadows Persists in South Africa
- The USD has been weaker against many major currencies, but the USD/ZAR has not joined a sustained bearish trend yet.
- Traders need to be cautious with the USD/ZAR in both directions, because the currency pair has concerns coming internally from South Africa which are affecting outlook.
- Nervous behavioral sentiment may remain persistent in the USD/ZAR.
USD/ZAR Short Term Outlook:
Current Resistance: 18.69800
Current Support: 18.66500
High Target: 18.79700
Low Target: 18.57100
Ready to trade our daily Forex forecast? Here’s some of the best trading platforms in South Africa to check out.