The USD/ZAR has put in additional bullish momentum and is traversing within the upper realms of its range.
The USD/ZAR is traversing near the 15.10000 mark in early trading today as it continues to knock on the door of higher values while in the midst of a bullish run. Speculators may feel anxious at the current heights and wonder if the USD/ZAR will start to suddenly change direction. However, the trend of the Forex pair has been rather strong and while reversals lower have certainly been seen, incrementally support levels do appear to be holding steady and increasing.
Having shown the capability of surpassing the 15.20000 ratios in late September, the USD/ZAR is once again signaling it may have additional room to rise. While traders the past year have become accustomed to rises followed by strong reversals lower in the Forex pair, now doesn’t seem to be the time for this to occur. Global market conditions are nervous and results across a spectrum of financial assets indicate fragile sentiment.
Technically, if the 15.10000 continues to work as a magnate and support levels around the 15.05000 to 15.01000 ratios prove adequate, the USD/ZAR could be in for additional upwards movement. While it is practical to ask if the USD/ZAR has gained too much and wonder what is the feasible limit of the current bullish run, traders should remember the pair has seen significantly higher values before. This is not a prediction that the USD/ZAR will suddenly be trading near the 16.00000 level, but it does point out that an upwards trajectory in the short term is not against the laws of trading.
If the resistance levels of 15.15000 begin to be challenged and is surpassed, there is reason to suspect the 15.18000 to 15.20000 levels will become targets. Having punctured these heights only a week ago, it is not farfetched for speculators to believe technically that higher realms will be fought over if market conditions continue to produce nervous sentiment.
Buying the USD/ZAR may make cautious traders feel anxious at these higher values, but there is evidence the Forex pair can traverse higher. Conservative traders may want to wait for slight reversals lower to ignite their buying positions and pursue moves higher. The USD/ZAR technically appears inclined to incrementally move upwards and could prove to be a solid speculative wager near term.
South African Rand Short-Term Outlook
Current Resistance: 15.14700
Current Support: 15.01000
High Target: 15.25000
Low Target: 14.94600