The USD/ZAR is within the higher realms of its long-term price range and is seemingly resting as the Forex pair awaits it next round of turbulence. Traders should not be lulled into a false sense of security and expect the consolidation which is being demonstrated to last much longer. Price velocity in the USD/ZAR has been strong and it is unlikely that the current value is a long-term value band.
As of this writing, the USD/ZAR is near the 15.45000 level with resistance levels around 15.52000 perhaps. However, yesterday’s trading did produce a high of nearly 15.58300, which tested values last seen in March of this year. The last time the USD/ZAR traded significantly above the 15.60000 juncture was in early November of 2020, and this occurred as the pair was descending from coronavirus ‘inspired’ price levels which saw highs above 19.00000 in April of 2020.
The USD/ZAR is not about to start testing those higher realms anytime soon, but the pair could break the 15.60000 mark and, if it does, volatility will certainly ensue. The USD/ZAR has been choppy in a rather steady fashion since the middle of August, after hitting a low of approximately 14.08000 in the second week of September a rather incremental bullish streak has developed.
Speculators who technically believe the USD/ZAR has been overbought cannot be entirely faulted. If a trader wants to be contrarian and be a seller of the Forex pair it may prove to be prudent to wait until resistance levels are approached again and exhibit that they are durable. What should concern traders with bearish intentions is the rather consolidated price realms the USD/ZAR has practiced the past two days. If current support levels near the 15.42000 to 15.40000 hold ground this could be a signal that additional upwards momentum can be found.
Speculators who want to pursue the bullish trend of the USD/ZAR may be making the logical wager. Traders should not be overly ambitious, because the 15.55000 to 15.58000 ratios could prove to be significant resistance. If a speculators can buy the USD/ZAR near current support levels and look for quick-hitting outcomes which move higher, this may prove to be an attractive trade if take-profit orders are working and produce profits.
South African Rand Short-Term Outlook
Current Resistance: 15.52000
Current Support: 15.42000
High Target: 15.60600
Low Target: 15.33400
