Having suffered from a long-term bullish trend and watching values constantly flirt with higher realms, the USD/ZAR had been able to create a downward trajectory since November the 3rd. However, last week saw momentum lower stall, and perhaps a new technical landscape emerge which may offer speculators an opportunity to contemplate the potential of a new range.
As of this morning the USD/ZAR is near the 17.34000 ratio with quick changes in value being seen. Before going into the weekend, the USD/ZAR saw a high on Friday of nearly 17.41000, this after seeing a high around 17.55100 the day before. However, to show the nature of the choppiness within the USD/ZAR the currency pair did trade around the 17.15000 level early in the week on Tuesday.
The Potential of a New and Tight USD/ZAR Range Speculatively Near-Term
While traders contemplate the potential of trying to take advantage of support and resistance levels which may find favorable conditions, the USD/ZAR has started today’s trading in a mode which is presenting a limited price range. However, traders need to understand global markets remain nervous. Yes, the USD has been weaker across the board in Forex the past few weeks, but price velocity lower did slow down last week which was also evident in the USD/ZAR.
Taking Advantage of USD/ZAR Consolidation and Being Aware of Trading Volumes
- Support for the USD/ZAR may look durable near the 17.30000 level. If this value is penetrated lower it could mean additional traction lower can be sought, but traders should not become overly ambitious.
- Speculators may want to pursue quick-hitting trades that target technical prices already flirted with in the past couple of days of USD/ZAR trading.
There will be key U.S services and manufacturing data released this Wednesday, but traders should note the U.S will celebrate a long holiday weekend because of Thanksgiving being celebrated. Meaning dynamic price action may be part of the USD/ZAR Forex landscape today and tomorrow as financial institutions position for the extended break, which will create very low trading volumes later this week. Speculatively traders should brace for the potential of swift conditions today through early Wednesday and then anticipate USD/ZAR trading becoming a crawl.
The 17.28000 to 17.40000 marks should be watched today, and traders should not try to target larger goals unless they are prepared to hold onto positions overnight which may prove expensive. Seeking reversals lower when perceived resistance is touched may prove worthwhile for bearish traders, and the use of taking profits to achieve fast results is encouraged when possible.
USD/ZAR Short-Term Outlook:
Current Resistance: 17.40100
Current Support: 17.29100
High Target: 17.51500
Low Target: 17.17600
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