The USD/ZAR has traded lower again as the week has begun, but a short-term battle is being waged as the Forex pair tries to establish stronger direction.
The past week of trading within the USD/ZAR has seen the Forex pair once again establish its bearish trend. In early trading this morning, the South African rand continues to demonstrate an ability to sustain its value below the key psychological inflection point of 15.00000. Short-term support levels are within eyesight technically, and speculators may be focusing on mid-term support ratios which are further away but perhaps appealing for those who continue to foster bearish sentiment.
The price of the USD/ZAR as of this writing is near the 14.90000 vicinity, and important support is just below with the juncture of 14.84000 looking as if it may be a critical lynchpin. On the 11th of March, the USD/ZAR did manage to trade near the 14.80000 ratio, but after touching this lower mark, a reversal higher ensued and the Forex pair promptly tested the 15.00000 the next day.
The mid-term range of the USD/ZAR has been choppy and difficult for traders who have only been pursuing selling positions based on a perception that the long-term trend of the South African rand will re-establish itself firmly. Traders who are cautious may be looking at the current value of the USD/ZAR and suspect that another reversal higher may be ignited and look for short-term profits as they target nearby resistance levels above.
The rather turbulent price range of the USD/ZAR admittedly allows speculators to pursue both sides of the coin – short and long positions – if they are using technical reversals based on nearby support and resistance as their cue. However, the long-term trend of the USD/ZAR has incrementally proven to have a rather durable staying power with bearish momentum.
An intriguing short-term perception within the USD/ZAR is that it may be signaling an ability to maintain its current price range and that resistance levels are beginning to look adequate. Speculators cannot be faulted for being attracted to the potential of further downside value to develop within the USD/ZAR.
Selling the USD/ZAR on slight reversals higher may prove the more opportunistic wager for short-term speculators. Support levels are clearly within sight and the Forex pair may have the capability to test lower values seen last week. If these nearby support levels prove susceptible, the USD/ZAR may begin to aim for lower support values exhibited last month.
South African Rand Short-Term Outlook:
Current Resistance: 14.98400
Current Support: 14.84000
High Target: 15.08000
Low Target: 14.74000