The USD/ZAR is near long-term key support levels as the Forex pair displays an ability to maintain its bearish stance.
In early trading today, the USD/ZAR is trading near the 14.00000 juncture. Speculators will need to pull out long-term technical charts when they are considering potential selling opportunities, if they feel that bearish momentum remains the dominant characteristic of the Forex pair. The USD/ZAR has displayed rather durable resistance levels the past couple of days and traders may believe they provide a solid ‘insurance’ as stop-loss ratios if they plan to go short.
However, the USD/ZAR’s support ratios, which now must be factored into take-profit goals for traders, are crucial. The 14.95000 mark may be a legitimate target for sellers of the USD/ZAR for short-term endeavors, yet it must be said that this ratio may prove hard to achieve. On the 11th, 12th, yesterday and today, the 14.9500 juncture has sparked reversals higher. They have not been volatile moves upward, but this support level has proven difficult to penetrate lower.
Why has the 14.950000 been able to withstand selling pressure? Likely because there is an immense amount of buying positions placed near this value via programmed trading. If the assumption is correct, this may because the 14.95000 juncture was last seriously traded in December of 2019.
A sincere amount of transactions for the USD/ZAR below the 14.95000 value has not actually been witnessed since July of 2109. In other words, the current value of the USD/ZAR is testing long-term lows and financial institutions know this, but it doesn’t mean this support level will prove durable and not eventually collapse.
Some speculators may be tempted to look for temporary reversals higher while targeting nearby resistance levels with buying positions. However, the bearish trend of the USD/ZAR continues to highlight a capable ability to move lower. The recent trading in the Forex pair has demonstrated resistance lowering incrementally, which may be a signal that additional downward action is going to unfold.
Predicting when a breakout downward is going to happen could prove to be wrong and dangerous, but bearish momentum appears rather strong. Selling the USD/ZAR remains a tantalizing trade. Speculators should not be overly greedy and cautious traders may want to wait for slight reversal higher before becoming sellers.
South African Rand Short-Term Outlook:
Current Resistance: 14.14000
Current Support: 13.95000
High Target: 14.21000
Low Target: 13.81000