The USD/ZAR has hovered near the key metric of 16.00000 since Friday and upon opening this week the currency pair is traversing slightly below the barometer around 15.99910, but this depends on the bids and asks being displayed by brokers.
The USD/ZAR has endured swift changing tidal movements the past week of trading, like the broad Forex market as volatility impacted financial institutions because of nervous outlooks. However, this morning the USD/ZAR is trading around the 15.99910 ratio with a wide spread as it maintains a lower realm, one in fact which has been demonstrated since late Friday.
It is unlikely Forex is going to completely calm down today and tomorrow, but USD/ZAR conditions this morning suggests financial institutions are perhaps less nervous than they have been recently. But day traders shouldn’t get too secure about their perspectives because important U.S economic data is set to be released this week, which means large players will likely try to position themselves before the U.S statistics are published over coming days.
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Key Barometer is Certainly a Target
While it may seem to obvious to state the 16.00000 is an important psychological barometer for the USD/ZAR, it remains worthwhile to monitor the currency pair around this level. Support levels near the 15.90700 held firmly early last week when downside movement erupted. During an upwards reversal which then took the USD/ZAR to a high of 16.42440 approximately on Friday, the USD/ZAR then sold off quickly and retested the 16.00000 mark. Fast and choppy via sudden bursts has become the norm in Forex recently, although things have been quiet since Friday.
As of this morning support around the 15.96800 vicinity proved durable. While day traders may be tempted to aim for lower depths in the USD/ZAR, financial institutions cannot be trusted quite yet regarding their near-term thinking, because it seems to clash with their mid-term outlooks. While many believe the USD has a weaker outlook mid-term, short-term nervousness is still causing momentary fires. Depending on U.S economic data results via the jobs and inflation numbers, the USD/ZAR could find itself lower if results are better than expected – particularly via the CPI.
Here Comes U.S Data this Week
Because of the limited U.S government shutdown last week, economic data publication dates have turned chaotic.
- Tomorrow Retail Sales will be released, but this number may not cause too much of a stir in Forex.
- On Wednesday however, the Non-Farm Employment Change statistics will be released, the job count will impact the USD/ZAR.
- On Friday, perhaps the most important numbers will be delivered via the Consumer Price Index inflation reports.
- The price of metals like gold and palladium regarding the USD/ZAR appear to be causing reactions, but the values are often over emphasized.
- The USD/ZAR remains within a rather solid bearish mindset, this as the South African Rand has gotten stronger incrementally over the long-term.
USD/ZAR Short Term Outlook:
Current Resistance: 16.00400
Current Support: 15.98700
High Target: 16.04150
Low Target: 15.95200