Speculators have been treated to a healthy dose of bullish behavior within the USD/ZAR as the Forex pair has easily punctured short-term resistance levels. Traders who have been enraptured by the long-term bearish momentum within the USD/ZAR may be finding the past two weeks of results rather difficult. On the 7th of June, the USD/ZAR was trading near a value of 13.36000.
As of this writing, the USD/ZAR is trading slightly below the 14.40000 juncture and is challenging prices not seen since the first week of May. The USD/ZAR has lost a lot of ground in the past week, as financial institutions have seemingly reacted to the U.S Federal Reserve’s interest rate announcements. However, skeptics may believe the move higher within the USD/ZAR has been overdone and may be contemplating another attempt to try and catch downside momentum which they suspect will develop.
On the 16th of June, the USD/ZAR was trading near the 13.68000 level and still within a healthy long-term bearish trend. However, the past week of trading underscores just how dangerous speculating can sometimes be and why it is always important to use a solid amount of risk management when pursuing Forex. The USD/ZAR technically appears to be within sight of important resistance between 14.40000 and 14.50000. If these junctures can prove durable, this might be enough to spark the interest of bearish speculators.
Price action within the USD/ZAR is likely going to produce fast conditions in the near term. The value of the USD/ZAR has certainly moved in an upwards direction quickly, which may lead traders to contemplate the notion upwards mobility is going to run out of power. However, stepping in front of the short-term bullish trend could prove to be dangerous for overly aggressive speculators.
If a trader is attracted enough to sell the USD/ZAR under the current conditions they are urged to use limit orders. A conservative approach may be to allow the USD/ZAR to trade near current resistance levels and sell the USD/ZAR near values between the 14.40000 and 14.45000 junctures. Traders should use tight stop loss orders and a cautious amount of leverage if they want to pursue short positions. The USD/ZAR will likely remain in a whirlwind the next couple of days, which could produce whipsaw results for traders if they are unprepared.
South African Rand Short-Term Outlook:
Current Resistance: 14.43000
Current Support: 14.31000
High Target: 14.61100
Low Target: 14.26000
