The USD/ZAR is within the lower elements of it near-term range as it traverses around 16.23400 as of this writing depending on the bids and asks on trading platforms.
The USD/ZAR has sustained it lower range early this morning with largely sideways trading results. The currency pair is near the 16.23400 mark with a rather typical spread being demonstrated. Early broad Forex action continues to see major currencies hold onto gains attained against the USD late last week, but it does appear via the USD/ZAR that financial institutions are waiting for larger volumes to emerge later before they lean into trading positions.
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The Iranian situation remains a focus for the global markets. While that may bother some traders who are growing tired of the narrative, the price of WTI Crude Oil remains an important part of the sentiment puzzle. Futures prices for WTI Crude Oil are slightly higher this morning and at this moment are approaching the $90.000 ratio. The higher prices in the energy sector this morning as trading starts for the week is certainly a justifiable reason for sidesways results in the USD/ZAR and a threat towards upwards prices.
Looking for Advantages and Wagering
Day traders trying to find an advantage in the USD/ZAR may want to look at current price levels technically and decide that support levels around current values have proven durable. This could lead to some traders to venture buying positions when technical support is perceived and looking for calculated quick hitting betters adventures upwards.
However, combined with the current international affairs regarding the Middle East, the lower depths of the USD/ZAR also offers another choice. If a day trader wants to pursue downwards momentum, they should wait for resistance levels to be touched and look for the currency pair to decline. Since the U.S White House has kept their sentiment rather mitigated – grey – and not helped financial institutions develop clarity, looking for more than short-term wagers seeking limited targets remains the most practical solution for traders.
Lower Depths and High Hopes for the USD/ZAR
The USD/ZAR traded in lower terrain during the mid-term, before the Iranian conflict the currency pair had challenged the 16.10000 ratio and lower. Looking for these depths to develop again for the moment may be too ambitious.
If WTI Crude Oil remains within sight of $90.000 it will not only cause inflation in the U.S, but higher prices elsewhere and this could be problematic for financial institutions considering selling positions.
Instead large players in Forex and the USD/ZAR may be rather comfortable with current short and near-term values and simply wait for more impetus, which could be delivered with one swift statement from the U.S White House – positive or negative.
Volatility has been part of the broad Forex market for the past few months and it isn’t going away quite yet.
USD/ZAR Short Term Outlook:
Current Resistance: 16.24500
Current Support: 16.23200
High Target: 16.29300
Low Target: 16.22100
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