The USD/ZAR is near the 16.72100 vicinity as of this writing early on Monday as trading volumes start to suffer from a lack of full market participation because of the upcoming holiday season.
The bearish trend of the USD/ZAR remains an intriguing speculative wager. The currency pair is around the 16.72100 mark as of this morning, but a wide spread is being displayed as a lack of full volume is in evidence. The USD/ZAR is certainly withing the lower part of its long-term technical realm, and day traders should pay attention to the incremental path lower that has been created.
However, wagering today and the remainder of this week, while trading platforms remain open as the holiday season draws officially closer can be dangerous. Unless a speculator is using entry orders and knows there is enough volume within the USD/ZAR to achieve the price action necessary to choose a direction, a trader may find they are fighting a battle they should not have participated within if caught off guard. A lack of real price action can not only be boring, but it can be dangerous.
Top Forex Brokers
Trend Lower as Financial Institutions Disappear
The target of 16.70000 might be the next logical target for speculators in the USD/ZAR, but getting sustained price action around this ratio may prove difficult. Take profit orders may have to be more conservative and choose numerical goals that are closer to current market ratios being displayed via brokers’ platforms. The trend lower in the USD/ZAR is not guaranteed.
The USD did show some strength the past few days, but this morning’s early Forex market is showing renewed weakness. But because of a lack of volume as financial institutions start to become conservative, all results should be looked upon skeptically by day traders. Getting into a trade of the USD/ZAR will likely be much easier than getting out of a trade if not enough price action is occurring. Today may not be as a large a problem as tomorrow regarding a lack of volume, but by Wednesday – on Christmas eve – traders would be wise to turn their attention elsewhere for a couple of days.
Not Believing Everything You See
The clear strength of the South African Rand attained over the past handful of months has been strong. Current values are traversing values not seen since January of 2023.
- The ability of the US/ZAR to track lower has been impressive.
- Perhaps this has been caused because of an improving bond market inside of South Africa as foreign investors explore their investment options, perhaps it is because financial institutions believe progress is being made about tackling corruption concerns domestically inside the nation.
- Again the move lower has been solid, but day traders cannot bet blindly on a one way avenue.
- Reversals will remain a constant part of USD/ZAR trading.
- As the Christmas and New Year’s holidays approach speculators need to be cautious and not wager on every result they see.
- The lack of volume in the broad Forex market makes some moves rather suspicious and could mean there will be reactions that are unexpected.
USD/ZAR Short Term Outlook:
Current Resistance: 16.72450
Current Support: 16.72130
High Target: 16.75950
Low Target: 16.70970
Ready to trade our daily Forex analysis? Here's a list of the best forex trading platforms South Africa to choose from.