The USD/ZAR has certainly seen short term bullish momentum continue to show its teeth the past week after reversing from lows made on the 21st of January near 14.73000. Early trading this morning has the USD/ZAR bouncing near highs made two days ago near 15.37000, before the forex pair saw a reversal lower on Tuesday and tested the 15.00000 mark.
It appears the 15.00000 price has become an important psychological target and yesterday’s bearish retracement signals this level may remain a definitive inflection point for the USD/ZAR. The long term bearish trend of the USD/ZAR has been demonstrative and speculators who pursued selling positions consistently likely found success on numerous occasions. However, the recent movement upwards in which the 15.00000 price has changed from resistance and into support needs to be contemplated.
Until the 15.0000 juncture is punctured lower, the USD/ZAR may stay within a rather consolidated trading landscape in which its new short term range produces choppy values. The current price of the USD/ZAR near 15.37000 may look like a high value to traders who have relentlessly pursued the long term bearish trend of forex pair, but it might be wise to remain patient and see if higher technical resistance is tested first before selling.
Speculators may even want to buy the USD/ZAR under present market conditions. If the forex pair tests the 15.25000 to 15.19000 junctures and shows an ability to sustain these support levels, using limit buy orders around these values could prove worthwhile. The broad global markets have seen mixed results on equity indices this week and tumultuous conditions in forex. The USD/ZAR has enjoyed a long term bearish trend, but until proven otherwise traders need to prepare for conditions which will test their ability to use limit orders and act quickly.
If the USD/ZAR climbs above the 15.37000 juncture, the forex pair will likely test higher resistance levels quickly as it fills in a trading vacuum from a technical perspective which last saw values around 15.46000 on the 12th of January. Speculators of the USD/ZAR should monitor the market closely near term and see if resistance levels prove durable in these choppy trading conditions.
South African Rand Short Term Outlook:
Current Resistance: 15.46000
Current Support: 15.17000
High Target: 15.59000
Low Target: 14.99000
