The USD/ZAR has drifted upwards and hit a high of nearly 16.68250 on early Friday. As of this morning the currency pair is around the 16.53200 ratio, but it is Freedom Day in South Africa, meaning there is no significant trading coming from the nation today as it celebrates its holiday. Volumes in the USD/ZAR will remain thin until the full return of South African financial institutions on Tuesday.
The USD/ZAR price action remains within the higher realms of its near-term range, but it is below heights seen in March when global market nervousness was erupting on a daily basis as Iranian war outlooks caused anxiety. While the war in the Middle East is still underway, the ceasefire is still being observed in many respects by the U.S and Iran, but questions regarding the Hormuz Strait sea navigation continue to cast a shadow on outlooks. The USD/ZAR has correlated to broad Forex price action.
Nervous Realm Awaits Reactions and Full Volume
Day traders who attempt to trade the USD/ZAR today should be aware that wide spreads exists. Because of this entry price orders are encouraged for those who decide to pursue the South African Rand today. Tomorrow’s trading will be a much more normal day in the USD/ZAR, and those who decide to wait until Tuesday to trade may get the benefit of having global financial institutions having reflected on this past weekend’s rhetoric that came from the U.S and Iran, which now has WTI Crude Oil above the 94.000 USD mark in futures markets as of this writing.
Meaning conditions in global markets might be a bit choppy including in the broad Forex market and equity indices, another day to gauge what is happening in the Iranian war may bring more calm or more volatility on Tuesday. But at least USD/ZAR traders may have more genuine insights regarding sentiment shifts that are occurring as the market operates fully.
Higher Ground and Concerns About Higher Terrain
Traders participating in the USD/ZAR should be ready for quiet markets that may appear to be standing still because of the South African holiday.
Lack of big volumes today makes the need for tactical trading necessary including strict entry orders and take profits.
Because of the wide spread being seen, traders should be cautious about all price action they are monitoring.
The USD/ZAR is within its higher range, resistance levels above the 16.60000 should be watched, if this realm is penetrated and sustained going into tomorrow it will mean nervousness has increased.
For those who want to be sellers of the USD/ZAR they may need the larger volumes that will be delivered on Tuesday, and also for some positive impetus that spurs on risk appetite globally.
USD/ZAR Short Term Outlook:
Current Resistance: 16.53800
Current Support: 16.52100
High Target: 16.60800
Low Target: 16.49970