While the USD/ZAR traverses near lows created before going into the weekend, the Forex pair is certain to have an eventful week. As of this morning the USD/ZAR is near 16.83400 and on Friday the 22nd of July the USD/ZAR currency pair did hit a low of about 16.79000. The USD/ZAR also hit a high of approximately 17.26600 on the 21st of July, which came in sight of challenging apex values displayed on the 14th of July near 17.30000 briefly.
USD/ZAR Fast Trading Conditions Likely to remain Persistent in Coming Days
As apex highs have been flirted with by the USD/ZAR, it has also produced pronounced and fast selloffs, making the USD/ZAR currency pair extremely dangerous for traders who do not practice solid risk management. The coming days will certainly demonstrate more volatility because of the onslaught of U.S driven fundamentals about to hit the financial world.
On Wednesday the U.S Fed will hike its interest rate again, an additional 0.75% is expected to be added to the key lending rate. However, the Fed’s hike is only the beginning of the story, on Thursday Advance GDP and on Friday inflation numbers will be presented. While technical traders may roll their eyes with disdain, these statistics will impact behavioral sentiment in Forex and the USD/ZAR will be affected because of outlook. Technical traders are bound to see frequent and lightning quick reversals create choppy conditions.
Can the 17.00000 now act as Resistance for the Time Being?
Support levels near the 16.81000 to 16.79000 ratios do look important for the USD/ZAR pair. While the downturn created the past two days of trading is intriguing support levels if proven durable may in fact become rather interesting places to wager on upwards reversals occurring. From a risk reward perspective, it does seem hard to imagine the USD/ZAR could traverse significantly lower from its current values without having a firm answer which highlights U.S inflation is declining and monetary policy is about to become more dovish. Until then how low can the USD/ZAR really decline?
- Short term support near the 16.80000 should be monitored; if this value proves durable it may be an interesting location to place buying orders for quick hitting moves higher.
- Short term traders should look for results that use profit taking orders to cash out wagers, before reversals produce additional choppy returns which can prove costly.
- Too much ambition upwards may prove hard to attain near term.
The USD/ZAR is certain to produce fireworks in the days ahead and traders should remain cautious. While upside movement does look attractive potentially for near term reversal higher to speculate on, traders must be prepared for conditions which generate whipsaw conditions which need to be navigated using solid risk taking tactics.
USD/ZAR Short-Term Outlook
Current Resistance: 16.91100
Current Support: 16.78010
High Target: 16.98900
Low Target: 16.66500
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