In early trading this morning, the USD/ZAR has packed a punch consisting of rather swift surges in value. As of this writing, the Forex pair has risen slightly above yesterday’s highs near the 14.65000 mark, but interestingly, the USD/ZAR has also managed to maintain short-term resistance levels. However, this slight change in technical data doesn’t seem to indicate that the USD/ZAR is about to resume its stronger bearish stance quite yet.
Speculators should remain on the lookout for temporary volatility to continue from the USD/ZAR. Yes, a low of nearly 14.39000 was touched yesterday, but this sparked a strong reversal higher, which actually then achieved the high for Wednesday’s trading near the already mentioned 14.65000 juncture. In early trading this morning, a low of around 14.46000 was tested, but this set off a rather demonstrative move higher and the 14.66000 level is now being traversed.
A glance at a one-month technical chart for traders may prove to be of interest. Speculators may note that the current price vicinity of the USD/ZAR still is comfortably within the stronger part of its bearish trend, but they may also acknowledge that current resistance levels which are being tested may prove to be a signal regarding short-term direction. If the 14.68000 ratio is able to prove durable, this could set off additional selling within the USD/ZAR, but if this resistance level is punctured higher, it is conceivable that a test of the 14.74000 to 14.77000 marks could unfold rapidly.
Happily for traders with bearish sentiment, the current higher values and the chance that another move upwards could occur may prove to be an opportunity. Cautious speculators who believe that the bearish trend of the USD/ZAR will remain intact and reestablish itself when resistance levels are approached cannot be faulted for pursuing selling positions.
The choppy nature of the USD/ZAR has been on display the past week and traders should remain alert. Fast trading has produced surges in both directions and traders need to have their risk management tools in place as they try to tactically take advantage of the long-term bearish trend. Continuing to remain conservative with leverage is advised, and trying to capture trends which are ignited via technical resistance may prove to be a preferable method for risk-taking.
South African Rand Short-Term Outlook:
Current Resistance: 14.68000
Current Support: 14.56000
High Target: 14.77000
Low Target: 14.46000
