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As the USD/ZAR straddles the middle ground of its three-month range, it can be argued equilibrium has been attained in the currency pair.
The USD/ZAR has sustained lower prices early this Monday that were produced before going into the weekend. The USD/ZAR is near the 18.61130 ratio as of this writing with quick changes of value being displayed, but importantly a rather consolidated start for the week.
Global market sentiment remains rather nervous, speculators this last week of August are likely hoping for more tranquil conditions. However, after reaching a high of nearly 18.90000 on early Friday volatility and coming within sight of highs produced early last week, the USD/ZAR did start to find a selling pressure mount which signals trading conditions may become calmer.
The ability of the USD/ZAR to maintain its lower short-term values can be viewed positively by bearish traders who likely remember the currency pair was testing lower depths on Wednesday of last week, and in early August. However, the dynamic price action of the USD/ZAR should come as no surprise to experienced traders who saw lows of 17.44200 on the 27th of July, only to then see a high of 19.31300 on the 15th of August.
Traders need to understand technical positions in the USD/ZAR and need careful consideration of timeframes. Day traders are frequently short-term oriented, and looking for quick-hitting moves. The perspective that the USD/ZAR is sustaining short-term lows and has not demonstrated a violent reversal higher this morning may prove tempting. Speculators who feel more downside pressure could develop and a test of the 18.55100 to 18.53300 ratios will potentially be seen cannot be faulted, but this might take another positive dose of broad market sentiment to be generated within global Forex conditions.
If the USD/ZAR is able to sustain values beneath short-term resistance levels early today and into tomorrow, this could signal tests lower will develop. However, choppy market conditions globally in Forex may mean that a wider price range will be seen. Traders should watch the 18.63100 to 18.65700 levels to see if they can hold back momentum which could possibly develop upwards in the near term.
- Economic data from the U.S. will be light today, but as the week moves on Consumer Confidence, GDP, and jobs numbers will all be published from the States and affect trading sentiment.
- As the USD/ZAR straddles the middle ground of its three-month range, it can be argued equilibrium has been attained in the currency pair. This could lead to a test of its short-term range producing a rather wide trading ground.
Current Resistance: 18.63100
Current Support: 18.57300
High Target: 18.67400
Low Target: 18.52600
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