The USD/ZAR continues to dance within a rather choppy tight price range and speculators who are capable of placing solid limit orders may find that they enjoy the trading landscape. From a risk/reward scenario the USD/ZAR continues to indicate technically there is more room to be seen if a downside trend were to develop. Resistance above has proven rather durable near the 14.44000 level, and there doesn’t seem much threat of the USD/ZAR suddenly challenging the 14.50000 mark. This doesn’t mean it cannot happen; just that technically it appears rather remote in the short term.
As of this writing, the USD/ZAR is traversing slightly above the 14.31000 level and current resistance appears to be the 14.37000 mark, while nearby support is around the 14.29000 level. Yes, these are rather close price levels without much room for error to trade within. Traders need to acknowledge the choppy movements the USD/ZAR has created the past week of trading as it fights within it current price range. The USD/ZAR had a low of nearly 14.16000 yesterday, which traders may believe is a legitimate target for bearish wagers, but this could prove overly ambitious. It is encouraged that conservative traders aim for support levels within the 14.29000 to 14.23000 vicinities for quick-hitting results.
No matter the direction a speculator chooses today, the main ingredient for profitable trading may prove to be solid take-profit and stop-loss selections. The choppy results within the USD/ZAR have created a whirlwind, but traders may be inclined to still pursue selling positions with greater enthusiasm. Cautious speculators may simply want to wait for slight movement higher and use limit orders with entry levels above current market action to initiate their shorts of USD/ZAR.
After hitting a high of 14.41000 yesterday, the USD/ZAR has produced an incremental move lower. Yes, there have been reversals higher, but they have been met with more selling. The current price level of the USD/ZAR does look agreeable for the pursuit of selling positions and support levels may prove to be rather attractive for traders who believe bearish momentum has the best possibility of producing solid returns.
South African Rand Short-Term Outlook:
Current Resistance: 14.37900
Current Support: 14.29900
High Target: 14.42700
Low Target: 14.18000
