The USD/ZAR is traversing within near-term highs as sentiment among financial institutions looks externally at U.S tariff policy and internally at domestic fiscal concerns in South Africa.
The USD/ZAR as of this writing is near the 18.40580 mark with sharp fluctuations being demonstrated via a wide spread. The shadow of the U.S tariff policies are certainly shadowing the broad Forex market and causing some USD centric strength to be expressed, but concerns from inside of South Africa are escalating too.
The potential of a combined surge in nervousness may help create durable support levels in the near-term for the USD/ZAR. The South African government has run into problems trying to get its budget approved. The coalition government has been showing signs of stress the past couple of months as voices grow within the nation that there is a lack of fiscal transparency. The USD/ZAR has produced rather strong support considerations technically around 18.30000 for wagering consideration.
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Lower Levels in Question Short-Term for the USD/ZAR
While lower price values in the USD/ZAR have been seen consistently since the end of the first week in March, short and near-term considerations in the currency pair may find that the upper price range becomes a focal point. Speculators will have to be extremely careful in Forex and the USD/ZAR today and tomorrow as financial institutions react to developing news which will be generated about the threat of tariffs from the U.S which will affect many nations.
The USD/ZAR has been able to correlate to the global Forex market well over the mid-term and this may not change soon. The concerns coming out of South Africa about political coalition unease has not quite boiled over quite yet, which may allow resistance levels to work well. However, if global Forex sees a sudden surge of the USD based on risk adverse leanings, the USD/ZAR could test higher values.
Resistance Levels as Targets and Risk Management
Conservative traders may want to remain spectators today and tomorrow in the USD/ZAR. The possibility that volatility will surge is a definite capability. The 18.40000 level should be watched today, if trading remains above this level in a sustained manner it may indicate financial institutions are braced for the change the USD/ZAR could traverse higher.
- Traders should not get overly ambitious and use risk taking tactics wisely.
- Targets that are within reach and able to be cashed out promptly may benefit speculators who do not have deep pockets and are looking to add profits when they can.
- While the 18.50000 level may look appealing for day traders who believe the USD/ZAR will go higher when volatility does break out, simply aiming for limited gains around 18.41000 to 18.43000 may be more appealing.
- Support levels around the 18.35000 to 18.30000 could be used by day traders who want to look for bounces higher if they believe nervousness will persist in the near-term.
USD/ZAR Short Term Outlook:
Current Resistance: 18.41100
Current Support: 18.35400
High Target: 18.46700
Low Target: 18.30900
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