The USD/ZAR remains within the upper realms of its price range and speculators need to understand additional volatility is likely to be demonstrated today.
The USD/ZAR as of this writing is near the 15.35000 level and is seemingly trading comfortably within the upper elements of its price range, which are challenging important mid-term highs. But before speculators get to comfortable with the value the USD/ZAR is trading today, they should be aware that the coming announcement from the U.S. Federal Reserve this evening is sure to stir up a hornets nest of volatility.
The USD/ZAR has been trending higher and its bullish momentum has been abundant in the short term. On the 21st of October, the USD/ZAR was trading near the 14.35000 ratio, which looks to be a healthy distance from the price the Forex pair is trading today. However, this lower level is also highlighted to show the rather fluid nature of the USD/ZAR when it is trading in fast conditions.
Intriguingly, on the 9th of March of 2021, the USD/ZAR was trading near the 15.56000 level, but on the 4th of June the forex pair was near a low of 13.36000. The fact the USD/ZAR has climbed again to within sight of its March highs should also demonstrate the ability of the Forex pair to potentially achieve higher ratios. While today’s value is within sight of this March high, traders should be prepared for a whirlwind of fast trading in the coming hours.
Technically, the USD/ZAR is certainly within the upper realms of its price range and some speculators may believe it is overbought, but betting against the current short-term trend may prove dangerous in the coming hours. Traders should expect choppy conditions to be displayed today and tomorrow and use their risk-taking tactics carefully. The use of entry prices to take a position within the USD/ZAR should be considered. Traders need to understand that as the U.S. Fed’s announcement is ready to be released values for the USD/ZAR will swirl in a storm-like fashion shortly before and after the reading.
If current support near the 15.33000 to 15.30000 ratio is able to prove adequate, it could mean another test of resistance levels will develop short term. However, upon the release of the U.S. Fed interest rate policy tonight, traders need to understand the spreads within the USD/ZAR will become volatile and before wagers are made speculators may want to wait for the Forex market to become more tranquil.
South African Rand Short-Term Outlook
Current Resistance: 15.39000
Current Support: 15.31000
High Target: 15.51000
Low Target: 15.23000