The USD/ZAR is around the 16.29000 level in early trading this morning which has seen a continuation of the Forex volatility experienced last week, traders face difficult short-term decisions.
Traders who are confused by the dynamic sea changes in value of the USD/ZAR that have been seen early today and the past week should feel relieved that financial institutions are just as confused. The changes of value in the USD/ZAR may look wild, but they are correlating to the broad Forex market which has also been mired with volatile conditions. The broad Forex market which has been rather tranquil over the past couple of years, and produced mostly polite incremental changes in value to the USD/ZAR and other currency pairs is suddenly experiencing a good old fashioned storm.
Speculators who are not used to these type of fast conditions are now being taught that risk management is essential. The swift up and downs followed by additional reversals that are wicked are hard to teach in a class room. USD/ZAR retail traders trying to take advantage of the assumption that the bearish trend in the currency pair must act one way are learning that the financial markets do not care what you or I think.
Current Values in the USD/ZAR
The USD/ZAR is near the 16.29000 value as of this writing, but readers must look at the value of the currency pair as they look at the markets and compare it to this price, this to judge how quick the wind is blowing and changing values. The USD/ZAR touched the 15.64000 vicinity early last Thursday, but has taken a turbulent elevator ride upwards in the past day and a half of trading.
Behavioral sentiment is shifting rapidly in Forex and when and where things will become calm again is an open question. Day traders who insists on pursuing the USD/ZAR or any other Forex pair for the moment need to understand the changes in value can make them solid profits, but the conditions are dangerous and a losing wager on the wrong direction can wipe out a trading account during one bad trade.
Near-Term Adventure in the USD/ZAR
Yes, at some point Forex and the USD/ZAR will calm down. Perhaps the higher values being touched currently look like overbought values to many traders and even financial institutions.
- However, the wide spreads via bids and asks in the USD/ZAR is an indication nobody trusts the Forex markets at this moment.
- Meaning, the wide spreads being seen on brokers’ platforms are designed for their companies offering the trading opportunities as insurance to guard against volatility – for themselves because they are nervous too.
- Looking for lower momentum in the USD/ZAR may be appealing per current values, but speculating on a move downwards needs to be done with entry price orders, stop loss and take profit targets firmly in place.
- Traders need to understand the near-term in Forex may remain extremely fast.
USD/ZAR Short Term Outlook:
Current Resistance: 16.32000
Current Support: 16.28000
High Target: 16.38000
Low Target: 16.23000
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