The USD/ZAR has produced plenty of speculative drama in the past week. On Thursday of last week, the USD/ZAR climbed to an all-time record height of nearly 19.91000 and seemed on the verge of actually challenging the 20.00000 level. However, after hitting the apex high on Thursday, the USD/ZAR started to sell off rather quickly and fell to a ratio of nearly 19.57300 on the same day.
Going into Friday’s trading, which was certain to be dramatic because of the coming publication of the U.S jobs numbers, the USD/ZAR climbed higher again and nearly touched the 19.65500 mark. But this high suddenly found resistance, which technically appears intriguing. The USD/ZAR then began a rather incremental and drama-filled move lower falling momentarily below the 19.40000 level as its low for Friday.
Trading this Morning in the USD/ZAR has been Speculatively Intriguing Too
Before going into the weekend, the USD/ZAR finished the day with one more reversal higher than a slight drop in value. The currency pair appeared to be trading in a normal manner, but it didn’t exactly correlate to the broad Forex market because the selloff in the USD/ZAR took place after the U.S. jobs numbers were better than anticipated. The USD actually got stronger against many major currencies.
Significantly the USD/ZAR did not become more bullish in the midst of the better than anticipated Non-Farm Employment Change results from the U.S. The ability of the USD/ZAR to trade lower, as global financial institutions had second doubts about what the U.S. Federal Reserve will do on the 14th of June regarding their interest rate policy raises questions. Certainly, the USD/ZAR has been trading within the upper realms of its record values and this has taken place as concerns about South Africa economically have grown. This morning the USD/ZAR has stayed within the depths of its one-week trading range. Traders may be anticipating a reversal higher.
USD/ZAR Behavioral Sentiment Will Test Technical Perceptions in the Near-Term
- Early morning support near 19.40000 should be watched, this value may prove rather important as an inflection value for the USD/ZAR in the near term.
- A move below the 19.40000 to 19.38000 that is sustained would open the door to the potential of a lower price range being tested two weeks ago.
- However, a failure to puncture the 19.40000 level lower could mean speculative buying is taking hold again of the USD/ZAR.
USD/ZAR Short-Term Outlook:
Current Resistance: 19.48700
Current Support: 19.40300
High Target: 19.66700
Low Target: 19.37700
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