Yet another lower support level has been proven vulnerable, this as the USD/ZAR trades near the 16.47000 ratio in early trading this morning, as financial institutions begin to consider near-term outlook after the New Year’s holiday.
The lower trend in the USD/ZAR has kept pace early this morning and the currency pair continues to sustain values below the 16.50000 ratio, as of this writing with a price of nearly 16.47000 being demonstrated. But before a day trader looks to hop on the trend lower they need to understand holiday trading volumes are still in effect and financial institutions in many respects will not return Forex to normal market conditions for a couple of days.
However, the USD/ZAR is certainly in plain view for all observers regarding its bearish trend. The currency pair is within a realm last practiced in July and August of 2022. Outlook has improved seemingly for the South African Rand, but its rather strong move lower in the past week may be thought of as suspiciously too strong by some speculators. Holiday trading results will be tested in full in the coming days.
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Vulnerable Support Levels and Skepticism
The 16.60000 support level was proven vulnerable on Tuesday of last week. On Friday the USD/ZAR managed to penetrate below the 16.50000 mark. The ability of the currency pair to maintain the lower depths is remarkable, but as full volumes return to Forex it will be intriguing to see if some believe the USD/ZAR has been sold too fast. USD centric action against other major currencies early today is choppy.
Day traders can certainly trade today, and little by little volumes will increase into tomorrow and beyond. The USD/ZAR has a rather technically efficient trend lower that it has demonstrated. Can the currency pair maintain its momentum, or will some headwinds start to show strength? If the USD/ZAR is still trading below the 16.50000 level going into this coming weekend that could be viewed as rather significant.
Risk Taking and Ambitions in the USD/ZAR
The 16.50000 mark today should be watched as a barometer. Speculators need to understand the spread in the USD/ZAR is likely to remain rather large today because of a lack of solid volumes.
- Financial institutions are working in South Africa today, but until large corporations return from their extended holidays positions in the USD/ZAR will remain lighter than normal.
- If the USD/ZAR maintains its current stance near the 16.47000 ratio today and more downwards pressure is achieved it would be noteworthy, but day traders looking for targets below should use quick hitting take profit orders to capture winnings.
- Traders should also acknowledge upon the return of full volume some volatility and velocity may be seen as the USD/ZAR faces a test of its status.
USD/ZAR Short Term Outlook:
Current Resistance: 16.48500
Current Support: 16.46900
High Target: 16.51600
Low Target: 16.45800