The USD/ZAR is now within sight of highs seen in August as the Forex pair extends its bullish streak which has dominated since the 20th of October. The USD/ZAR is trading near the 15.30000 juncture and the lack of a significant reversal lower the past few days of trading may be making some speculators brave. A high of nearly 15.32000 was tested before going into the weekend and early trading today has not withered from this height with any significant force.
Technical highs reached in August happened rather quickly around the 20th and 21st of August, and Septembers values have been surpassed already. If the USD/ZAR is able to prove its current stance is sustainable and is able to penetrate higher resistance near 15.39000 and traverse into the 15.40000 values, highs from March and January could quickly be tested too.
Traders who have felt the USD/ZAR has been overbought and are pursuing short positions have likely found it a losing battle the past week. Speculators who continue to believe a reversal lower from the current price ratios certainly need to use risk management wisely, but they should also keep their eyes on the ‘clock’. If the USD/ZAR is able to sustain its rather lofty price near term, there could be another legitimate leg up which might develop.
If August highs of 15.32000 to 15.39000 continue to get pestered and treat these resistance levels as targets today and tomorrow, it could be a sign institutional investors are getting ready for Wednesday’s Federal Reserve Bank pronouncements from the States. Technical and fundamental consideration may prove to be a useful tool short term.
Conservative traders who are skeptical about the upwards momentum the USD/ZAR has shown, but do not want to fight the trend, may want to wait for reversals lower which touch the 15.27000 to 15.25000 marks to ignite buying positions. Current support levels could prove to be durable near the 15.24000 juncture and used as stop loss targets by more aggressive traders who chose to go long the USD/ZAR in a quicker manner. As the USD/ZAR lingers near the 15.30000 juncture in early trading today, it may prove to be a rather significant inflection point short term. If and when the mark is penetrated, additional bullish trajectory would not be a surprise.
South African Rand Short-Term Outlook
Current Resistance: 15.33000
Current Support: 14.85000
High Target: 15.24400
Low Target: 15.14000
