USD/ZAR: Long-Term High Demonstrated and Potential for More

Robert Petrucci

The USD/ZAR moved above long-term highs and appears to be sustaining its upward price realm in a calm trading environment, but traders need to be careful.

Advertisement
Take advantage of great ZAR trading opportunities now!

Trade USD/ZAR Now

The USD/ZAR is trading near the 15.88000 ratio in early trading this morning. The Forex pair was able to achieve a high of nearly 15.98000 momentarily yesterday, and the ability of the USD/ZAR to mount an upwards trajectory has been rather demonstrative. The current price of the USD/ZAR is now testing ratios not displayed since November of 2020.

Technically, the USD/ZAR has burst through all mid-term highs and its calm trading manner within these upper realms may signal the ability to mount a higher price trajectory. Speculators who are targeting more bullish price action in the short term should keep in mind that Forex will see substantially reduced transaction volumes the remainder of this week, including today because of the US Thanksgiving holiday. This could open the door to imbalanced trading which could cause brief volatility which doesn’t correlate to short-term technical conditions.

However, if the USD/ZAR continues to keep its bullish pace intact and the 15.90000 level proves vulnerable and prices are sustained above, this could be a signal that higher values may be exhibited sooner rather than later. Traders should not be overly ambitious near term because of the lack of large institutional transactions, but if consolidation is displayed and support levels are sustained, aiming for nearby resistance marks as a price goal with a take profit order working could prove to be a worthwhile wager.

The bullish trend in the USD/ZAR has been strong since the middle of October when the Forex pair was trading near the 14.56000 level. A solid combination of technical and fundamental factors has combined to make the USD/ZAR an intriguing buying opportunity, and traders need to consider their outlooks. The fact that the pair has broken through important resistance and is now within sight of higher price bands which have not been tested since September and October of 2020 may prove tempting for bullish speculators.

Today and tomorrow could prove to be choppy for USD/ZAR traders because of the absence of large institutional financial houses participating in Forex. However, wagering on a buying position short term on slight reversals lower could prove to be an opportunistic trade when seeking higher moves which maintain the current price band the USD/ZAR is now practicing.

South African Rand Short-Term Outlook

Current Resistance: 15.92000

Current Support: 15.82000

High Target: 15.99000

Low Target: 15.73000

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.

Did you like what you read? Let us know what you think!

exclamation mark

Please make sure your comments are appropriate and that they do not promote services or products, political parties, campaign material or ballot propositions. Comments that contain abusive, vulgar, offensive, threatening or harassing language, or personal attacks of any kind will be deleted. Comments including inappropriate will also be removed.

0 User comments

exclamation mark

Please make sure your comments are appropriate and that they do not promote services or products, political parties, campaign material or ballot propositions. Comments that contain abusive, vulgar, offensive, threatening or harassing language, or personal attacks of any kind will be deleted. Comments including inappropriate will also be removed.

Read more
Add new comment
This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.