A vital support level is being tested in early trading by the USD/ZAR and speculators need to pay attention.
The USD/ZAR has enjoyed a solid bearish trend and, in early trading today, the Forex pair is hovering near an important support level. The 15.15000 via longer technical charts clearly shows that this value has not been sincerely tested since late February and, if it sustains value lower, traders should expect to see volatile trading emerge.
Global risk appetite is heightened and there is an optimistic whiff of sentiment in the air. The USD/ZAR achieved another strong dose of downward momentum yesterday when the 15.30000 level was punctured lower and brushed aside other small support levels with little effort. However, after running into the 15.20000 price vicinity, the USD/ZAR took a moment to catch its breath.
The price of gold has actually also seen a solid amount of selling in recent trading, which means the strong bearish trend of the USD/ZAR has not been a hard correlation again. It seems the power driving the USD/ZAR is the weakened USD and the cascading effect of positive financial sentiment dominating the international markets.
The 15.15000 juncture is important for the USD/ZAR, and if the Forex pair sustains values below this level, speculators may have the 15.10000 target within their sights. The South African rand did trade within the 14.75000 to 15.10000 levels in the month of February. If global risk appetite remains strong, there is reason to suspect this may be the next legitimate price range the USD/ZAR is targeting if financial houses continue to march towards pre-COVID-19 values.
Trading in the USD/ZAR is fast this morning and traders need to be attentive. At the moment, the Forex pair is trading near the 15.15000 level and showing the ability to challenge marks below. Speculators should be careful and consider risk-taking with the knowledge that short-term reversals might develop. But if the 15.14000 is broken lower, the USD/ZAR could then be ready to test marks which were truly traded in February and frolic near the 15.10000 to 15.06000 vicinity.
Selling the USD/ZAR within these lower depths of its demonstrative bearish trend may feel wrong, but it might prove worthwhile. The Forex pair appears to be riding its way toward lower targets, which seem to be within the targets of computerized trading systems.
South African Rand Short Term Outlook:
- Current Resistance: 15.22000
- Current Support: 15.12000
- High Target: 15.25000
- Low Target: 15.06000