Turbulent trading conditions have hit the USD/ZAR the past handful of days as the higher value band the Forex pair traverses continues to be tested. As of this writing, the USD/ZAR is sustaining its price above the 15.00000 level, but this has not been without a fight. After hitting a high of nearly 15.19000 and seemingly prepared to challenge late September prices, the USD/ZAR actually began to decline in a rapid fashion.
On the 7th of October, the USD/ZAR hit the 14.81000 juncture then reversed slightly higher, only to test the 14.78000 vicinity on the 8th. However, since hitting that short-term low, the USD/ZAR has incrementally risen again, and in today’s early hours, the Forex pair is proving that bullish sentiment remains a factor as technical traders try to gauge the next direction.
Forex has seen widespread choppy conditions the past couple of days as nervous sentiment and risk-taking wrestle for control. Technical traders may look at the 15.00000 as key support. However, intriguingly, the rather quick reversals which are being demonstrated within the USD/ZAR open the door for speculators who like fast trades and ‘tight’ take profit capabilities.
It is not recommended that every trader pursue ‘scalping’ opportunities, because if a strong reversal breaks out this can cause a serious amount of anxious emotions to boil if the trade goes in the wrong direction. If a speculator chooses to look for limited movements, they also need to use their stop losses effectively. Because the USD/ZAR has been rather robust with its recent reversals, a slightly wider-than-normal stop loss should be considered, but only for traders who practice their use of leverage conservatively.
Having effectively fought off lows seen late last week, the USD/ZAR in the short term has achieved a move upwards. Speculators who believe the trajectory will again test the 15.10000 to 15.15000 ratios may be making the logical wager. Traders may want to use entry points to make sure a sudden move in the wrong direction doesn’t catch them by surprise. Buying the USD/ZAR near the 15.04000 to 15.02000 levels and looking for bullish sentiment to emerge short term could be a worthwhile endeavor.
South African Rand Short-Term Outlook
Current Resistance: 15.09800
Current Support: 15.03000
High Target: 15.17300
Low Target: 14.96000
