Start Trading Now Get Started
Affiliate Disclosure
Affiliate Disclosure DailyForex.com adheres to strict guidelines to preserve editorial integrity to help you make decisions with confidence. Some of the reviews and content we feature on this site are supported by affiliate partnerships from which this website may receive money. This may impact how, where and which companies / services we review and write about. Our team of experts work to continually re-evaluate the reviews and information we provide on all the top Forex / CFD brokerages featured here. Our research focuses heavily on the broker’s custody of client deposits and the breadth of its client offering. Safety is evaluated by quality and length of the broker's track record, plus the scope of regulatory standing. Major factors in determining the quality of a broker’s offer include the cost of trading, the range of instruments available to trade, and general ease of use regarding execution and market information.

USD/ZAR Analysis: Volatility and Impending Game of Guessing Sentiment

By Robert Petrucci
Robert Petrucci has worked in the Forex, commodity, and financial profession since 1993. Important aspects of his work involve risk analysis and advisory services. As an advisor in a Family Office he maintains a conservative approach for wealth management and investments. Robert also works in private finance with investors and companies delivering financial and management services.

The USD/ZAR has opened with tranquil trading this morning and has returned to a slightly higher one week middle ground via technical charts.

USD/ZAR Analysis Today - 11/11: Market Uncertainty (Chart)

  • Following a very predictable week of volatility the USD/ZAR has opened trading this morning with a slight run upwards.
  • The currency pair is near the 17.62100 vicinity with a wide bid and ask spread in evidence. Last week’s low in the USD/ZAR touched the 17.22600 area on Thursday in the wake of the U.S Federal Reserve interest rate cut, only to reverse higher and resume upwards realms of recent trading.

Top Forex Brokers

1
Get Started 74% of retail CFD accounts lose money Read Review

Last week’s volatility in the USD/ZAR which was rampant because of the U.S election reactions and the Fed’s FOMC meeting, this week should subside. However, traders need to understand that shifting outlooks and trading positions within financial institutions will not be accomplished in a day. Folks who are trading on sentiment need to make sure they are not getting caught up in the noise of the Forex market, of which there is plenty still. There is a guessing game still being played.

Short-Term USD/ZAR Considerations

The USD/ZAR has been stronger over a handful of months due to the ability of South Africa to create a coalition government and it being seen as a positive sign by financial institutions. This helped take the USD/ZAR from vulnerable highs and has helped create a lower trading realm. Since late September however, the USD/ZAR like most other currency pairs has seen bullishness emerge as risk adverse trading.

Now that the U.S election is finished and most of the counting is done, the USD/ZAR will once again start to focus on economic data which comes from the U.S and combines with domestic issues in South Africa fiscally. The U.S will release important inflation data this Wednesday and Thursday. The ability of the USD/ZAR to hit lows last Thursday when the U.S Federal Reserve cut its interest rate signals some bearish sentiment is lingering in the USD/ZAR. However, the short-term still needs to see behavioral sentiment become calmer.

USD/ZAR Fluctuations as Equilibrium is Sought

The USD/ZAR looks overbought taking into consideration the past few months of trading. Yet, the nervous mid-term higher range the currency pair is within may linger, and betting on a sustained trend downwards in the near-term may too ambitious.

  • Instead traders may want to use resistance levels that are perceived as a place to ignite wagers seeking some downside momentum that can be cashed out using take profit orders.
  • The range of 17.64000 to 17.58000 may prove interesting over the next handful of hours in the USD/ZAR.
  • As behavioral sentiment adjusts and begins to focus on economic data in the middle of this week, the currency pair can expect a wider range to emerge again.

USD/ZAR Short Term Outlook:

Current Resistance: 17.63600

Current Support: 17.61100

High Target: 17.65400

Low Target: 17.56200

Ready to trade our daily Forex forecast? Here’s some of the best trading platforms in South Africa to check out.

Robert Petrucci
About Robert Petrucci
Robert Petrucci has worked in the Forex, commodity, and financial profession since 1993. Important aspects of his work involve risk analysis and advisory services. As an advisor in a Family Office he maintains a conservative approach for wealth management and investments. Robert also works in private finance with investors and companies delivering financial and management services.
 

Most Visited Forex Broker Reviews