The USD/ZAR is near the 14.95000 ratio as of this writing. The Forex pair went into the weekend testing important mid-term highs and its values have been sustained in early trading this morning. South Africa for the moment has seen a reduction in civil unrest, but experts warn that the government has many difficult tasks ahead if they want to create a durable calm.
Current values within the USD/ZAR are testing prices not seen since late March of this year. Traders should also pay attention to the 15.00000 level which will certainly play an important psychological barometer for all participants within the USD/ZAR. If this level is breached higher and is able to be sustained, it could be a significant indicator that more bullish momentum may be generated.
The last time the USD/ZAR traded above the 15.0000 ratio was in late March. It needs to be remembered that on the 4th of June, the Forex pair was trading near lows of 13.35000, which the USD/ZAR had last seen in February of 2019. However, since early June of this year, the combination of nervous sentiment generated because of the U.S Federal Reserve’s whispers regarding potentially higher interest rates and the fuel of social unrest in South Africa have combined to create significant bullish momentum.
After protests began to build in South Africa, trading within the USD/ZAR certainly became nervous, but early last week a tentative moment of calm was seen within the Forex pair. After hitting a high of nearly 14.75000 on the 21st of July, the USD/ZAR moved lower and traded below 14.50000 on the 22nd. However, since then, the past week has seen an incremental rise in value for the USD/ZAR. Traders who were expecting violent and swift gains higher may have been disappointed, but the trend of the USD/ZAR continues to make technical resistance appear weak.
If resistance begins to be tested near the 14.98000 to 15.02000 junctures and prices are sustained, this would be an indicator that another leg higher may be exhibited within the USD/ZAR. Traders should not be overly ambitious and use realistic take profit ratios to cash out winning positions if they are produced. Buying the USD/ZAR on slight reversals lower appears to be the logical wager for short-term speculators.
South African Rand Short-Term Outlook:
Current Resistance: 15.02000
Current Support: 14.83000
High Target: 15.13000
Low Target: 14.69000
