The USD/ZAR has opened with slight bullish movement in early trading this morning as global markets continue to display nervousness.
While many major equity indices including the U.S turned in solid performances the end of last week, Forex continues to exude nervousness and the USD/ZAR is a prime example. Stubborn highs remain the flavor for traders, and bearish speculators who insist on pursuing downward wagers are likely feeling a certain amount of pain and seeing losses within their trading accounts.
South African Rand has found it hard to Sustain Bearish Reversals
It is too easy to say the 18.00000 level is important psychologically for the USD/ZAR currency pair. Technical traders are likely not spending much time considering if the South African Rand will suddenly sustain downward momentum, the ability of the USD/ZAR to sustain its higher range may becoming an established fact. Certainly, the USD/ZAR can trade lower and below the 18.00000 level, but for now support levels remain inflated. The USD/ZAR is not the only currency pair experiencing these conditions.
The 18.17000 to 18.13000 Support Ratios are likely being Monitored
On the 18th of October the USD/ZAR fell below the 18.00000 mark, and this past Friday the Forex pair briefly came within sight of the juncture. Fragile market conditions globally are creating choppy conditions for the USD/ZAR, and speculators may find this a positive characteristic if they feel confident about support and resistance levels in order to take advantage of the realms.
- Traders may want to use short-term reversals lower towards the 18.20000 ratio to ignite buying positions of the USD/ZAR, while targeting limited moves higher and remaining realistic about goals.
- Current market conditions globally will likely remain, and traders may suspect more volatility will develop. The USD/ZAR traded above the 18.53000 level on Friday which had not been seen since the 13th of October previously.
The USD/ZAR remains within the higher elements of its long-term range. Bearish traders who have the perception the currency pair is too high may eventually be proven correct. But until there is a strong and sustained trend downward, it may be best to simply look for selling opportunities when bearish speculators feel the USD/ZAR has reached short term resistance.
The problem for speculators who insist on being sellers is knowing when resistance will prove durable and not become vulnerable. In the meantime, all traders should be careful with the USD/ZAR and look for the 18.15000 to 18.40000 level in the short term to likely get a rather robust amount of price action.
USD/ZAR Short Term Outlook:
Current Resistance: 18.26100
Current Support: 18.17800
High Target: 18.42300
Low Target: 18.03100
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