Superior broker technology provider since 2010
+1 (315) 675 1086 |

Bounce Higher Holds and Speculative Range in Play

The USD/ZAR has bounced higher since late last week and sustained its upper short-term prices, which puts speculative pressure on traders regarding perspectives.

On Wednesday of last week the 21st of June, the USD/ZAR was trading around the 18.30000 ratio in a rather comfortable mode when technical upwards momentum began to not only show signs of brewing but potentially boiling over.  The upwards movement of the USD/ZAR seemingly began to hit when Federal Reserve Chairman Jerome Powell began to speak in front of Congress and sounded aggressive once again regarding the potential for interest rate hikes to come.

brokers-we-recommend Forex Brokers We Recommend in Your Region

See full brokers list see-full-broker


By Thursday of last week, the USD/ZAR continued to challenge higher values and while it did achieve a low around the 18.31000 ratio, the currency pair started to find stronger buying and began to prove resistance was vulnerable.  By the middle of the day on the 22nd the USD/ZAR had climbed over the 18.50000 level and its price velocity was beginning to build speed.

Late on Thursday a bit of a selloff occurred in the USD/ZAR but the lows around 18.47000 proved short-lived.   Within a few hours, the USD/ZAR soon found its value above the 18.60000 ratios, and the currency pair was not done moving higher. By Friday the USD/ZAR hit the 18.78000 level, this before going into the weekend showing an ability to sustain its higher values.

Only a few weeks ago, the USD/ZAR had a much higher value, well above 19.0000.  Although the USD/ZAR has moved slightly lower in early trading this morning and is near the 18.70000 mark, traders should remain somewhat suspicious of the Forex pair due to its complicated trading nature over the past year. The upwards trend in the USD/ZAR over the long term cannot be forgotten just because the past few weeks delivered lows, which tested support levels still within the currency pair’s upper realms when a long-term chart is contemplated.

  • Risk-averse trading because of nervous broad market conditions globally could create support for the USD/ZAR to remain durable.
  • Traders should watch the 18.70000 ratios now being tested to see if this value is sustained or can be penetrated lower. The door is open for the possibility of choppy trading to ensue over the near term.
  • Traders looking for upside price action should also be conservative and not overly ambitious today. A test of a range between 18.65000 and 18.75000 could prove to be a key barometer over the next twenty-four hours.

Current Resistance: 18.73400

Current Support: 18.68600

High Target: 18.82000

Low Target: 18.63100

          USD/ZARReady to trade our daily Forex analysis? Here’s a list of the best forex trading platforms South Africa to choose from.

Leave a Reply

Your email address will not be published. Required fields are marked *

YourOwnBrokerage is a leading Technology & Business Consulting firm with a specialized focus in Fintech industry.

RISK WARNING: Trading products are highly speculative in nature and carries a significant level of risk which may not be suitable for all investors. Please ensure you fully understand the risks involved and only invest money you can afford to lose. Seek advice from an independent adviser if at all unsure as to the suitability of investing in such instruments.

The content of this website must not be construed as personal advice. We recommend that you seek advice from an independent financial advisor.

The information on this website is not directed to residents of certain jurisdictions where such distribution or use would be contrary to local law or regulation.

© 2009 - 2024 All Rights Reserved.