USD/ZAR: Bearish Move Gains and Mid-Term Lows Now Challenged

Robert Petrucci

The USD/ZAR has continued to move in a downwards slope and has achieved one-month lows yesterday and early today.

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The USD/ZAR is hovering within sight of the 14.46000 level as of this writing and the Forex pair has created one-month lows yesterday and early today as it traverses important support and moves fast. The last time the USD/ZAR traded below its current values was in the middle of September, but it was within a strong bullish run higher. The USD/ZAR reached a high of nearly 15.25000 on the 30th of September.

The ability of the USD/ZAR has seen a consistent amount of choppy reversals which have come within sight of mid-term highs, but the pair has in fact created an incremental bearish trajectory the past two-and-a-half weeks. Intriguingly, the trading within the USD/ZAR is gaining a stronger downward slope in recent days and if the 14.46000 is penetrated lower and values can be sustained below this realm, more selling momentum could develop.

The broad Forex market remains choppy short term as memories of the strong USD moves the past month lurk in many minds. However, the ability of the USD/ZAR to move lower has seen an additional push and speculators may believe the mid-September values are a legitimate target below. If the 14.46000 level is proven to be vulnerable traders may believe the 1.44000 to 14.42500 levels can be goals. Traders are reminded not to be overly ambitious.  

While bearish speculators may be pursuing the trend which has certainly been strong the past week, contrarian speculators are definitely lurking. If the 14.48000 level is retested and proves to be adequate in the short term, bullish traders may want to aim for quick hitting targets above that do not overreach and look for take profit targets near the 14.50000 to 15.52000 ratios.

Price velocity within the USD/ZAR should be watched closely, if the USD/ZAR penetrates the 14.46000 level and challenges the 14.45500 mark below in a fast manner this will mean volatility is going to be a factor as financial institutions try to find equilibrium. The USD/ZAR has provided a rather strong amount of choppy trading the past couple of months, but the trends have been evident and while speculators try to take advantage of the directions, institutional traders are likely being equally challenged as they try to gauge the abundant volatility the Forex pair has seen.

South African Rand Short-Term Outlook

Current Resistance: 14.49000

Current Support: 14.46000

High Target: 14.65000

Low Target: 14.44000

USD/ZAR

Robert Petrucci
Robert Petrucci has worked in the Forex, commodity, and financial profession since 1993. Important aspects of his work involve risk analysis and advisory services. As an advisor in a Family Office he maintains a conservative approach for wealth management and investments. Robert also works in private finance with investors and companies delivering financial and management services.

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