The USD/ZAR has largely seen a bearish trend develop the past three weeks of trading. The forex pair is also languishing within the lower part of its value range during this time period. However, intriguingly the USD/ZAR is also within a value band which has produced a constant track record of reversals.
The current price action of the USD/ZAR this morning is within a range of 16.60000 to 16.70000 and this juncture should be looked at carefully by speculators. The South African Rand has tested support near the 16.40000 level a few times the past three months and this may happen again soon. However, the reversals higher off of this juncture have been pronounced. And the question is, if the 16.4000 to 16.5000 junctures will be tested short term or if a reversal higher will first be experienced from its current price band.
The USD/ZAR continues to offer traders an opportunity to look at two dynamic trading possibilities. Selling the USD/ZAR with limit orders near the 16.75000 to 16.80000 junctures and looking for downside momentum to emerge and test the 16.55000 level below is logical.
And actually buying the USD/ZAR at the 16.55000 to 16.60000 level and seeking upwards price action towards the 16.75000 juncture cannot be faulted. The trading range of the USD/ZAR within its current range offers traders an opportunity to take advantage of what can be defined as a fairly steady range. The lower value of 16.40000 should be watched carefully, if this is broken lower it could mean the USD/ZAR is ready to break out downwards and test values not consistently traded since March.
However, if the USD/ZAR breaks through higher values of 17.00000 it could mean another test of resistance above could be in the cards too. The USD/ZAR offers a chance for speculators to test their short term technical perspectives while managing their risk wisely. Stop losses should be featured prominently within your decisions. Traders will need to be patient to activate their positions if they are using limit orders effectively to take advantage of the forex pair’s rather intriguing range. However, once within an active trading position, speculators may find that the USD/ZAR produces a rather quick result.
South African Rand Short Term Outlook:
Current Resistance: 16.85000
Current Support: 16.54000
High Target: 17.00000
Low Target: 16.44000
