The USD/ZAR is hitting new short-term highs and its trading appears to have gained bullish momentum while also adding price action velocity.
As of this morning, the USD/ZAR is putting in a serious challenge to the 15.00000 level and has in fact surpassed the important juncture. A short-term high of 15.06000 has been attained today thus far and the last time the USD/ZAR saw this value was on the 24th of August. However, the move higher in the USD/ZAR this time around is correlating to the broad Forex market and isn’t an outlier. The last time the USD/ZAR saw its current highs was after the pair had hit a high of nearly 15.40000 on the 20th of August.
While some speculators may believe the USD/ZAR has been overbought and they might be proven correct long term, there is evidence to show the current heights may have further reason to climb. The 15.00000 level is important psychologically, but if value can be sustained above this juncture near term and start to act as support, then the USD/ZAR may be indicating it has the ability to gain more additional momentum.
One of the chief characteristics of a successful speculator is there ability to change their opinion and execute a new plan. The trend of the USD/ZAR has shown significant bearish capabilities the past year for long durations and has proven worthwhile to pursue, but the move upwards which started around the 10th of September needs to be given respect and attention.
After hitting a mid-term low of nearly 14.05000 early in the second week of September, buyers started to step into the USD/ZAR and begin to show that its selloff from August highs may have been too strong. Resistance levels the past two-and-a-half weeks have been brushed aside and the USD/ZAR has shown a tendency to move quickly and its velocity should be taken seriously. As of this morning having plowed through the 15.00000 juncture, traders should examine take-profit ratios near the 15.08000 to 15.11000 with fresh perspectives.
Volatility is ample within the USD/ZAR currently, and short-term reversals may prove quick, so traders need to practice their risk management effectively. Traders may expect natural cycles downwards to be exhibited even if the USD/ZAR continues to challenge higher ratios short term. Speculators may want to buy the USD/ZAR on slight moves downward which test current support, while looking for upwards momentum to ignite again.
South African Rand Short-Term Outlook
Current Resistance: 15.08000
Current Support: 14.98000
High Target: 15.19000
Low Target: 14.93000