The USD/ZAR remains transfixed within the lower depths of its value range, but a tight range the past few days of trading has emerged.
The USD/ZAR remains within a strong bearish range technically, but the past few days have seen a consolidated value band essentially make the Forex pair a target for speculators who have the ability to scalp. Traders who can use tight take-profit and stop-loss ratios and enter their positions with limit orders may have an opportunity to take advantage of the USD/ZAR short term.
If the current tight range is able to hold, the USD/ZAR may continue to display a rather remarkable ability to reverse off nearby support and resistance levels. The South African rand is certainly maintaining lower long-term values and remains near crucial support levels which, if proven vulnerable, could cause another dose of strong selling within the USD/ZAR.
However, the durability of the present support levels has proven fierce, and traders may find out that they are being too aggressive if they are targeting values via selling positions below the 14.20000 juncture in the short term. Values below do look enticing, but the rather capable consolidation of the USD/ZAR short term and the recent inability to break the 14.10000 mark consistently may signal before another selling storm develops that reversals higher can be sought by using current support levels.
Speculators in the USD/ZAR will have to remain nimble. Yes, bearish momentum from a technical standpoint has certainly proven to consistently produce results long term, but traders may need to see another surge of momentum downward before they can pursue a strong selling move. The support junctures of 14.24000 to 14.18000 do look quite adequate.
On the flip side, resistance near the 14.30000 has also proven to be strong in the past few days and the 14.34000 has served as a rather tough gatekeeper. Traders who have the ability to trade between the existing support and resistance levels may find that the most attractive way to trade the USD/ZAR in the short term is to simply buy near technical support of 14.24000, and sell around the 14.30000 juncture. Scalping the USD/ZAR will need to be done using solid tactical limit orders to operate within the Forex pair, but until the tight range within the South African rand vanishes, this will likely produce the most worthwhile speculative wagers.
South African Rand Short-Term Outlook:
Current Resistance: 14.32000
Current Support: 14.23000
High Target: 14.41000
Low Target: 14.17000