The USD/ZAR is trading within a lower realm as this week’s trading begins, but the currency pair still lingers within the highs of its long-term range.
The USD/ZAR is near the 18.20000 level as of this morning. The day has opened with relatively tranquil trading and a lack of volatility. The USD/ZAR has been able to incrementally trade lower since reaching a high on Tuesday of last week when the Forex pair challenged the 18.60000 landscape. The USD/ZAR did touch a low of nearly 18.01600 on Thursday, but on Friday did creep slightly higher.
The USD/ZAR has been able to correlate to the broad Forex market the past week relatively well. This is a relatively healthy sign for the South African Rand as it trades under the shadow of political questions which hover in the nation. The ability to generate downward motion and create a selloff after touching highs last week shows financial houses still react to the U.S. Federal Reserve and its interest rate policy.
However, while the USD/ZAR has traded lower and maintained its lower stance the past few days of trading, the currency pair remains within the higher realms of its long-term price range. Questions about the capabilities of the South African leadership and suspicions of corruption are not going to fade quickly. Thus, support levels above 18.00000 continue to look rather capable and may continue to allow speculators to buy on perceived lows and wager on upside price action.
- The corporate banking crisis in Europe and the U.S continues to linger and nervous results can be seen in the global markets.
- While the USD/ZAR has been able to produce downward momentum, fragile behavioral sentiment may continue to keep the currency pair from developing a solid trend lower that can be sustained.
Traders should expect choppy results over the near term as financial houses remain on high alert for potential problems from the global banking sector. Traders may want to set their sights on support levels near the 18.18000 to 18.16000 levels a location to ignite buying positions looking for a higher price value. The USD/ZAR may linger within the realms of the weekly price range as behavioral sentiment awaits additional impetus. Technical traders may be able to take advantage of current conditions, but they should monitor the financial world’s sudden news which could stir Forex abruptly.
Current Resistance: 18.22100
Current Support: 18.17800
High Target: 18.26400
Low Target: 18.12500
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