The USD/ZAR is within a curious trading sphere this morning for speculators. Resistance levels near the 14.50000 mark have proven rather strong and reversals lower have been produced, although as of yet, bearish momentum has not fully been able to reassert its stronger powers.
A low of nearly 14.42000 was demonstrated early this morning, which actually might prove to be a rather good signal for traders who want to pursue more downside momentum. A reversal higher for the USD/ZAR was attained after the early low today, but the Forex pair continues to produce a rather consolidated range. Yesterday, the USD/ZAR did trade above the 14.50000 juncture momentarily and reached a high of almost 14.55000, but this highest move was very short-lived and began to produce incrementally lower trading until this morning’s support target was achieved.
The USD/ZAR has been in a long-term bearish trend and its recent consolidated trading landscape may be an opportunity for speculators to take advantage of the Forex pair if another breakout develops. Traders who continue to pursue downside price action should continue to look for quick-hitting trades using support as targets with their take-profit orders. But these same traders should also keep in mind that the USD/ZAR was trading at lower depths only a handful of days ago. On the 29th of April, the USD/ZAR tested the 14.16000 level briefly.
The USD/ZAR will likely not hold its current price range between the 14.40000 and 14.50000 levels. From a technical perspective, it appears there is greater risk/reward opportunity to venture wagers on more bearish momentum. The junctures of 14.35000 to 14.29000 could produce a rapid display of fireworks if they are tested. Resistance above the 14.52000 ratio appears to be rather strong; if nearby resistance levels continue to produce adequate reversals lower, this may be a signal that additional bearish momentum is about to emerge stronger.
Continuing to sell the USD/ZAR on slight reversals higher appears to be a rather worthwhile wager for short-term speculators. Current resistance levels can be used as stop-loss areas to guard against sudden spikes. The USD/ZAR last traded above the 14.52000 mark in a serious manner in the second week of April. It is possible that higher values will be exhibited by the USD/ZAR, but from a technical viewpoint it appears that the better potential is for the Forex pair to remain in bearish territory and test lower prices.
South African Rand Short-Term Outlook:
Current Resistance: 14.51700
Current Support: 14.42000
High Target: 14.59000
Low Target: 14.38000
