The USD/ZAR is trading near the 18.34100 ratio as of early this morning. The start of trading this week will be quiet and speculators looking to participate need to understand light holiday trading will remain in effect most of this week, only gradually building until the full return of larger volumes next Monday. The ability of the USD/ZAR to trade within sight of lows tested in the past couple of weeks will entice day traders.
Traders should be braced for choppy conditions today and tomorrow. The lows currently in view technically may look attractive, but knowing that lower values were produced and their likelihood as a target might not be enough to push the USD/ZAR to new depths in early trading this week. While economic data will start to be published in earnest this week, it is all about corporate clients returning to their work desks and placing orders to their financial institutions. Many corporate offices will remain on holiday over the next few days.
Price Range of USD/ZAR Likely to be Choppy
Speculators looking to take advantage of the light holiday trading in effect should use entry prices and strict take-profit orders. The use of stop-loss orders will be important, but it might be wise to set the numbers slightly further away from the USD/ZAR currency pair price compared to what ordinarily would be used. Meaning because of the light holiday trading in effect, having a slightly wider stop loss may keep you from getting knocked out of trade quickly, particularly in what may be quick choppy conditions today and tomorrow.
The price range of the USD/ZAR may appear very calm and quiet over the short term, but sudden gyrations could cause values to be seen that are not expected. The 18.30000 level looks as if it has proven to be important over the past couple of weeks and this may continue. Traders may aim for this mark as a support target and take a profit price if they are bearish and looking for quick-hitting trades.
USD/ZAR Leverage Should be Conservative Near-Term
- Traders should use very conservative leverage today and tomorrow with the USD/ZAR. Particularly if they plan on using slightly larger stop losses compared to what they would practice due to the light holiday trading.
- The 18.30000 to 18.40000 realms in the USD/ZAR should be monitored today, moves below or above these prices may prove to be technically interesting as outliers in the near-term, and a place to ignite positions looking for reversals back to the range.
USD/ZAR Short Term Outlook:
Current Resistance: 18.36000
Current Support: 18.31100
High Target: 18.41100
Low Target: 18.29900
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