Vital support levels within the USD/ZAR have been punctured and the Forex pair may be prepared to challenge long-term bearish targets.
Speculators of the USD/ZAR will have to look at long-term charts today. This will help them gain perspective on the technical potential that the Forex pair may have in store as its traverses crucial support after vital prices were punctured late last week. The USD/ZAR is trading within sight of the 14.00000 mark and, if it crumbles, values not seen since 2019 will be the focus for bearish speculators.
After support around the 14.17000 collapsed on Friday, the USD/ZAR destroyed support near the 14.10000 ratio. However, the 14.0000 value is now the focus, and not only is it an important psychological level, but it is also a crucial price for the USD/ZAR since February 2019. Support near the 13.86000 juncture has proven adequate since this date and has produced strong reversals when it has been hit.
Speculators who want to pursue additional momentum downwards cannot be faulted, but they should keep in mind the long-term technical support ratios which are below. Short-term traders may believe it is wise to pursue the bearish trend and target nearby support levels close to the 14.00000 ratio and not pay attention to the important lower depths. This may prove to be a good logical decision momentarily.
However, experienced traders will also acknowledge that the long-term support targets may become a source of volatile trading. Globally, the USD remains on a weaker footing within Forex and sentiment remains bearish regarding its short-term outlook. The problem is that current values within the South African rand and other major currencies against the USD are near very unnerving values for many national central banks. Technically, traders may be wise to look for quick trading scenarios and anticipate the potential for choppy results near term.
The USD/ZAR continues to express bearish sentiment as it traverses it lower long-term depths. Speculators who want to look for contrarian reversals based on the belief that some natural upside momentum will be produced via nearby support levels cannot be faulted. Traders should not be overly greedy while pursuing buying and selling positions in the near term. The anticipation of volatile conditions the next few days within the USD/ZAR should be given consideration.
South African Rand Short-Term Outlook:
Current Resistance: 14.10000
Current Support: 13.97000
High Target: 14.19000
Low Target: 13.89000