As of this writing the USD/ZAR is near the 19.04500 ratio in early trading Monday morning. On Friday before going into the weekend, the USD/ZAR traded near a high of almost 19.15500 before stumbling lower. On Thursday of last week, the high produced by the USD/ZAR was close to 19.25100 level a couple of times. There was an even higher value seen on Tuesday of last week.
The incremental decline of the USD/ZAR the past few days might not look like much since it remains above the 19.00000 level. Perhaps bearish traders may still want to wait for further downside evidence from the USD/ZAR before stepping into a wager. However, if risk appetite begins to increase in the global markets there is a potential opportunity to speculate on more declines in the USD/ZAR.
Nervous Markets Remain and the USD/ZAR is within the Higher Elements of its Price Range
Yes, the USD/ZAR is still highly-priced as behavioral sentiment in the U.S. and elsewhere remains fragile. Risk-averse trading is producing an echo chamber of noise that retail traders should remain rather cautious about regarding current market conditions. The past month of trading in the USD/ZAR has been volatile and the swift climb upwards may have caught many traders who were looking for a sudden reversal lower to be sustained off guard.
Day traders should not be overly ambitious if they want to pursue selling positions of the USD/ZAR in the short or near term. Yet there might be reasons technically and via an interpretation of behavioral sentiment that allows speculators to contemplate the notion that downside price action could develop in the USD/ZAR. The 19.00000 is certainly going to be a focus in the short term for traders looking for lower price momentum.
The 19.00000 Support Level is an Obvious Psychological Level in the USD/ZAR
Over the next handful of hours if the 19.00000 remains a Forex battlefield it will be worthwhile to see if the USD/ZAR can go lower and sustain value beneath this level. Short-term traders should not be overly ambitious and manage their positions with defined risk-taking tactics such as take profit and stop loss orders. Perhaps looking for the 19.03000 to 19.02000 levels to be hit will prove worthwhile.
- The BRICS Summit gets underway tomorrow in Johannesburg, but its impact on the USD/ZAR may prove to be limited in Forex. While the conference is certainly important, it is hard to say it will cause a sudden shift in USD/ZAR momentum.
- Trading in the USD/ZAR today will be affected largely by market sentiment, if risk appetite increases slightly the currency pair may continue an incremental move lower in the near term.
USD/ZAR Short-Term Outlook:
Current Resistance: 19.06100
Current Support: 19.03100
High Target: 19.11040
Low Target: 18.90300
Ready to trade our daily Forex forecast? Here’s a list of some of the best regulated forex brokers to check out.