The USD/ZAR has shown an ability to incrementally produce lower resistance levels as its bearish trend fights to re-establish itself.
The USD/ZAR is traversing below the 15.00000 juncture and has produced incrementally lower resistance junctures the past week of trading. However, the current value of the USD/ZAR remains a battleground, as sentiment seems to have created a rather turbulent short-term trading landscape. The USD/ZAR has been within a long-term bearish trend, but January did produce a difficult month for speculators if they were pursuing downward momentum.
Current support levels should be watched extremely carefully within the USD/ZAR. If the 14.85000 level proves vulnerable and trading continues to traverse lower, the important target speculators should keep their eyes on is the support mark of 14.79000. If this juncture is punctured lower, it will signal that the bearish trend of the USD/ZAR may be about to gather more power.
Trading in the USD/ZAR has been choppy, but traders who have had the stamina to pursue bearish moves may have found success if they have been selling on higher pullbacks and using take profit orders. Global risk appetite has shown the ability to stay exuberant the past few trading days after a rather sluggish couple of weeks. Equity indices again are traversing record territory even as dark shadows from coronavirus pervade news media.
Technically, the USD/ZAR is still within its long-term bearish trend, but the past month of trading, however, may have scared off some speculators. The current value range of the USD/ZAR should be watched carefully; if the Forex pair is able to sustain its price below the 15.00000 juncture and not produce sudden spikes higher, it will be an indication that more downside momentum can develop.
Traders who are conservative may want to wait for current support levels to prove vulnerable before shorting the USD/ZAR. However, the more logical choice might be to wait for slight pullbacks higher within the Forex pair as it tests current resistance between the 14.90000 to 14.95000 junctures and sell. The USD/ZAR has produced some surprise volatility in the past month, but the past week of trading has been more tranquil. Traders may find solid opportunities to wager on further bearish movement from the USD/ZAR near term as they target important values below which are within shouting distance.
South African Rand Short-Term Outlook:
- Current Resistance: 14.95000
- Current Support: 14.85000
- High Target: 14.99000
- Low Target: 14.79000