The USD/ZAR is trading near the 14.73000 juncture as of this writing, which is below highs seen the middle and end of last week. The value of USD/ZAR remains a battleground for traders as choppy conditions remain prevalent, but some technical traders may perceive the Forex pair has begun to show signs of incrementally decreasing and the beginning of bearish signs emerging.
The USD/ZAR is certainly within the upper heights of its long-term technical charts. The USD/ZAR flirted with the 14.90000 juncture a couple of times last week, but importantly was not able to really topple the level with any strength. This lack of ability to challenge late July highs may give encouragement to traders who still believe the USD/ZAR is within overbought territory.
If support levels begin to be tested near 14.70000 and are not able to withstand selling pressure, speculators may believe the 14.64000 mark could become targeted. After hitting a high of nearly 14.91000 on the 11th of August, the USD/ZAR fell to a low within a handful of hours to 14.61000. The Forex pair challenged the 14.90000 level again this past Friday, but selling happened on Friday after achieving short-term highs and the USD/ZAR remains near support in early trading today.
The USD/ZAR remains a testing ground for speculators who need to control their emotions. Volatility in the Forex pair has been a frequent guest the past month due to national unrest in South Africa. However, traders who continue to keep an optimistic tone and have benefited from bearish momentum in the USD/ZAR before may see the current trading status of the Forex pair as an opportunity.
Conditions are likely to remain choppy in the short term, because there continues to be a lack of clarity in South Africa. However, if a speculator believes that conditions will improve ultimately and that markets will fight for normalcy, then a trader cannot be blamed for pursuing selling positions of the USD/ZAR.
Resistance levels near the 14.78000 to 14.81000 levels should be watched astutely. If these junctures can prove durable in the short term, it may be an indication that further selling momentum is going to occur in the USD/ZAR. Current nearby resistance levels can be used as appropriate stop loss ratios by traders looking for more downside action to develop.
South African Rand Short-Term Outlook:
Current Resistance: 14.81000
Current Support: 14.68000
High Target: 14.88000
Low Target: 14.57000
