The past few days within the USD/ZAR have produced a choppy, yet consolidated range for the USD/ZAR. As of this morning, the Forex pair continues to hover near important support levels, but has not been able to establish a sustained attack and penetrate lower values. However, the USD/ZAR has accomplished a considerable bearish trend the past six months and as late as the 28th of September the Forex pair was near a much higher value of 17.150000.
The downward trend of the USD/ZAR has been strong and speculators may need to practice a dose of patience near term if they are expecting immediate results. One way directions are hard to fulfill, particularly in the world of speculative trading, and short-term results no doubt always carry the risks of reversals in active markets.
The support level of 15.30000 has proven durable and traders should keep their eyes on this inflection point. While the USD/ZAR continues to hover near lows and values it last traded in March, there is no sure thing that the track of the Forex pair is definitely going to be downward. However, there is no denying global risk appetite remains high, which might continue to impact the USD/ZAR with bearish potential near term. This means that there may actually be more room for the South African rand to traverse to lower depths.
If the USD/ZAR manages to break through current support levels, the big challenge may be the 15.20000 mark. If this support level is tested, it could conceivably set up the framework for a test of values within the 14.90000 to 14.75000 price band. These lower prices have not been experienced since February, but the reason they are mentioned is because if the USD/ZAR were to start trading within this range it is not outside the scope of a previous reality. This means it is possible, even if some fundamental analysts believe the South African rand would be overvalued at these lower depths against the USD that it has happened in the recent past.
If the USD/ZAR continues to sustain its current price range and does not suffer from strong reversals upwards, it may be indicating that additional bearish momentum could develop. Traders may want to contemplate selling the USD/ZAR on slight reversals higher and use resistance above as stop loss orders.
South African Rand Short Term Outlook:
- Current Resistance: 15.45000
- Current Support: 15.30000
- High Target: 15.54000
- Low Target: 15.25000
