As of this writing the USD/ZAR is trading near the 16.78000 realm and is within sight of short term highs. From the 10th until the 14th of August the USD/ZAR currency pair tested lows near the 16.12000 to 16.10000 realms. On the 2nd of August the USD/ZAR was near the 16.91000 ratio, after its fall to lows in the second week of the month, the Forex pair then managed to climb upwards and hit a high of around 17.14000 on the 23rd. One week later the USD/ZAR has continued to produce a rather swirling range of results for speculators near highs.
The USD/ZAR does appear to take on tranquil trading conditions often, but then can be hit with volatile spikes. Entry price orders when speculating on the USD/ZAR can be used to limit the dangers of sudden fluctuations and to deliver more reliable price fills that meet expectations. Having retested highs in August near 17.14000 which came within sight of apex marks which hit the 17.27000 juncture a few times during the third week of July, the USD/ZAR was not able to penetrate the top resistance levels.
Even though the top tier of August prices was not able to topple the July values, the USD/ZAR remains within the upper realms of its long term price range. Yes, lower marks were certainly flirted with too, and the 16.10000 mark which was challenged in August did hit lows last seen on the 29th of June. However, the point many speculators may want to take away is that the nature of the USD/ZAR range remains rather opportunistic to pursue trends. Global financial behavioral sentiment remains rather nervous, in fact if may be more nervous as the month of September starts compared to when August began.
- The U.S Federal Reserve is likely to pursue a hawkish interest rate policy the next few months, which may serve as a support barrier for the USD/ZAR within reason.
- Highs reached in August did not hit July apex marks, but if September produces upwards momentum above 17.00000 another bullish leg cannot be ruled out.
Fundamentally Searching for Equilibrium in the USD/ZAR and Higher Values
Traders that like to correlate the price of gold to the USD/ZAR may see the precious metal looks to be oversold, particularly when global economic conditions remain inflationary. The loss of value in the South African Rand however, may have more to do with nervous global sentiment and the notion the U.S Federal Reserve could continue to raise its interest rates over the next few months.
High inflation remains troubling globally and central banks have had a difficult time finding a cure to mounting prices because the energy sector remains highly valued. Technically, the USD/ZAR may look overbought, but it may have reason to traverse higher still.
USD/ZAR Outlook for September 2022:
Speculative price range for USD/ZAR is 16.0700 to 17.18100
Traders may want to pursue quick hitting tactics which highlight a variety of support and resistance levels within the perspective of momentum trading. In other words, instead of looking for support or resistance levels to launch a trade which seeks a reversal in the opposite direction, a trader may want to pursue momentum via the stronger direction if the range of the USD/ZAR remains within certain ratios.
Support for the USD/ZAR appears strong near the 16.70000 level and lower marks have not been seen since the 18th of August. If the USD/ZAR falls below the 16.68000 mark, it may prove worthwhile to target the 16.64000 to 16.60000 levels for quick hitting goals. If the 16.60000 level is proven vulnerable there is reason to suspect the USD/ZAR could trade lower, and a move towards the 16.40000 realm is not out of the question during September.
While the USD/ZAR trades within the higher realms of its value it is tempting to think it is overbought, but if the Forex pair manages to break above the 16.80000 and sustain this value, traders cannot be blamed for thinking the 16.90000 mark is a target. Risk taking tactics should remain diligent and chosen well. If the USD/ZAR were to start sustaining value above the 17.00000 this could mean more bullish speculative buying will be seen and that global markets remain quite nervous.
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