- In early morning trading the USD/ZAR is near the 18.86590 mark.
- Holiday trading volumes will affect the broad Forex market today and speculators in the USD/ZAR should also take into account last Friday’s price action was rather thin.
- While the USD/ZAR was briefly above the 19.10000 on Thursday and has managed a solid reversal lower since, the results lower may appear to be rather suspicious when Good Friday and Easter holiday trading is considered.
The USD/ZAR correlated to the Forex market in a healthy manner while moving higher on Thursday. U.S economic data remains too strong for the tastes of many financial institutions which are starting to have doubts about U.S Federal Reserve outlook. Growth numbers from the U.S via the GDP report last week came in slightly higher than expected and inflation data remains rather high. Many major currencies have lost value and experienced choppy conditions versus the USD, and the South African Rand is among this company.
USD/ZAR Sustained Reversal Lower in Question
The ability of the USD/ZAR to reverse lower on late Thursday and into Friday, and sustaining its lower near-term values might make traders with bearish ambitions relatively pleased, but they should be careful and consider if potential reactions await the currency pair in the form of bounces upwards. The USD/ZAR has remained rather consistently highly valued in recent trading, yes, choppiness has certainly occurred, but the tendency to challenge and sustain prices above the 19.00000 may not be over yet.
Today’s trading in the USD/ZAR needs to be looked at skeptically because of the light volumes which will be experienced. Tomorrow volumes will start to come back to normal as financial institutions return to their offices and start to position the USD/ZAR for the week ahead. Data from the U.S this week includes a parade of employment statistics which will climax with the Non-Farm Employment Change this coming Friday.
Price Targets Downward in the USD/ZAR and Realistic Goals
Traders who continue to look for more downside from the USD/ZAR should be careful today. Support near the 18.85000 to 18.83000 could prove to be durable. There is a change the price of the currency pair could go lower, but this might prove to be a solid buying opportunity for speculators who are looking for near-term bounces higher.
- Because of holiday trading today the USD/ZAR may be open to quick reversals which feel uncorrelated. Risk management is needed and realistic targets should be used by speculators.
- Tomorrow’s opening for the USD/ZAR should be watched closely. Traders may want to see where the currency pair leans towards when full volumes return to the USD/ZAR realms, this to see if lower values are being maintained.
USD/ZAR Short Term Outlook:
Current Resistance: 18.88100
Current Support: 18.84800
High Target: 18.94700
Low Target: 18.82900
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