The USD/ZAR is near thew 17.34300 this morning per the usual assortment of bids and asks flourishing early as Forex opens for the week, this as the currency pair shows a rather stable price range.
Consolidated trading has greeted the USD/ZAR the past handful of days. The South African Rand continues to show an ability to linger within the lower stronger elements of its price range versus the USD. The tendency for the USD/ZAR to battle what appears rather durable support even as global financial markets remain rather cautious, because of tariff rhetoric and the U.S government shutdown can also be looked upon as a potential optimistic note for those with bearish sentiment.
The USD/ZAR did climb to a high of nearly 17.48225 early on Friday but then witnessed a rather calm reversal lower. As of this morning the USD/ZAR is near the 17.34300 mark depending on the bids and asks populating trading platforms. Interestingly and perhaps a signal of strength in the South African Rand, the high made on Friday was below a high near the 17.50100 vicinity seen last Tuesday.
Broad Forex Market and the USD/ZAR
Trading in the global Forex market has been rather choppy the past weeks with plenty of choppy results and this may continue to be seen in the USD/ZAR. However, the ability of the USD/ZAR to use perceived resistance levels as a trigger to look for lower price action remains viable. But the million dollar question is where exactly firm resistance is in order to take advantage of reversals.
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The 17.37000 to 17.40000 ratios do look potentially as place a speculator may want to look for selling opportunities. As always conservative leverage is needed to allow for a trade to filter through higher realms before shifting lower. And then of coarse there is the potential the USD/ZAR does not move lower within the allowable timeframes a day trader has at their disposal. This is why it is called speculation ladies and gentlemen.
Near-Term Impetus and the Threat of No Data
Day traders looking for lower price action and those who have targets seeking momentum downwards cannot be faulted, but they should know things will not come easily.
- While the USD/ZAR continues to look like it wants to go lower and test support levels between 17.30000 and 17.26000, it needs to be understood that the currency pair is within the grips of a broad Forex market that is showing cautious sentiment.
- The lack of U.S government data is causing a rather consolidated price realm in some of the larger currency pairs to be seen, the USD/ZAR is effected by this mantra of choppiness.
- The U.S Fed will release their FOMC rate decision next week even if the U.S government shutdown is still in force supposedly.
- A cut of 25 basis points is expected.
USD/ZAR Short Term Outlook:
Current Resistance: 17.35100
Current Support: 17.33070
High Target: 17.38800
Low Target: 17.26100
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