The South African Rand is correlating to the broad Forex market as its higher realm begins to look sustained. While volatile trading is still causing chaos in the USD/ZAR, actual swings in the currency pair have started to take on the look of acceptance of current price realms. As of this morning the USD/ZAR is tracking within sight of the 17.15000 level with a big differential between bids and asks.
The ability of the USD/ZAR in the past few weeks to battle higher and then move quickly lower created opportunities to take advantage of shifting momentum. However, the past couple of days in the currency pair are showing signs that support levels are becoming stern above 17.0000. The Iranian war has entered its second month now and financial institutions appear to have factored ongoing risks.
The 17.20000 Level as a Potential Target
Traders should not become too ambitious with their targets, but aiming for higher territory in the USD/ZAR appears to be the logical contemplation. The USD/ZAR did very well with its bearish trajectory over the mid-term in recent months. The ability to trade below the 16.00000 from late January until the start of the Iranian war was a sign of positive attitudes about the South African Rand, but it may be time for speculators to accept the current circumstances.
The temptation to believe the USD/ZAR is overbought is logical too, but trying to figure out when a sincere bearish trajectory will take hold is difficult. For the moment the USD/ZAR within it higher realms seems like this is where large players feel equilibrium must be. The near-term will likely remain choppy, particularly as global assets remain choppy and investors cautious. The 17.20000 level looks possible as a target via near-term ambitions.
USD/ZAR Short-Term Outlooks
Technical traders may believe the charts will give them clues about movements that will occur via reactions that can be predicted due to what has happened the past few weeks. However, the Iranian war remains a dangerous element which could spring surprises and cause vicious breakouts and yes, with reversals with velocity that are hard to prepare for due to the potential of new developments that shake market confidence.
The USD/ZAR does look overbought, but again, thinking about the possibility of the currency pair exploring additional steps higher is not out of the question.
Lower price action will happen, but can it be sustained?
The USD/ZAR did touch the 17.25500 vicinity early last week.
Sustained price action that crawls upwards may make wagering on marks that approach the 17.17000 to 17.18000 levels rather attractive.
Retail traders without deep pockets need to remain conservative and not over reach for targets.
Cashing out winning positions when they develop is a solid tactic.
USD/ZAR Short Term Outlook:
Current Resistance: 17.15400
Current Support: 17.14300
High Target: 17.19300
Low Target: 17.13100