The USD/ZAR is traversing the near the 15.91830 mark for the moment with a wide spread being seen on trading platforms. The U.S is on holiday today, meaning large American financial institutions will remain absent from Forex today. Trading is likely to remain light in the USD/ZAR throughout the day. The ability of the South African Rand to generate additional strength on Friday and sustain lows into the start of this week will get a test on Tuesday.
U.S inflation data this past Friday came in below expectations. The USD/ZAR was traversing highs around the 16.07000 ratio momentarily, but upon the weaker than anticipated Consumer Price Index data USD centric price action took on a weaker stance, the USD/ZAR was sold with some force and essentially finished around the 15.94400 mark.
USD/ZAR Signals and Outlook Ahead Near-Term
Although trading has been relatively light this morning the USD/ZAR has held onto its lower range since today’s opening. The move back below the 16.0000 has the currency pair traversing terrain seen late last Monday and on Tuesday. The USD/ZAR did touch a low around the 15.8120 mark on Thursday of last week, and was able to demonstrate trading below the 15.90000 marks from Wednesday into the next day rather consistently.
Reversals in Forex and in the USD/ZAR have been prevalent the past couple of weeks, this as volatility has increased as global financial markets have taken on a rather cautious tone. However, the notion that the USD may be facing additional headwinds as outlook considers further Federal Reserve interest rate cuts is likely influencing Forex and the USD/ZAR. Day traders participating today should be careful about carrying open positions into tomorrow when volumes will certainly increase and perhaps see large orders create some choppiness.
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USD/ZAR Lower Range and Downwards Ability
The South African Rand has gained effectively against the USD. The bearish trend of the USD/ZAR has been a standout in Forex over the mid-term. The ability of the currency pair to create a sustained attack below 16.90000 certainly has financial institutions thinking about additional capabilities downwards.
- Day traders are warned to not get overly ambitious.
- The 15.90000 is a legitimate target for speculators and price action below tomorrow may become a talking point.
- The 15.80000 to 15.90000 could become a testing ground.
- While caution is definitely an element in current market action, some folks may look at the USD/ZAR results in late January when the 15.70000 level got a momentary test.
- But again, day traders should target values that allow them to cash out profits effectively, because the USD/ZAR will still provide reversals upwards that could be stronger than anticipated occasionally.
USD/ZAR Short Term Outlook:
Current Resistance: 15.93400
Current Support: 15.91100
High Target: 15.98700
Low Target: 15.88900