Significant start of the mid-term technical assistance test
After spending the past few weeks under intense media exposure due to unrest in South African communities, USD / ZAR is now testing significant levels of support.
USD / ZAR has continued to prove that it has the ability to create a short term bearish trend which has now put the Forex pair in view of significant medium term technical support levels. Only a week ago, the 26the July, the USD / ZAR was trading within a hair’s breadth of the 15,000,000 junction.e July, after dropping to a low near 14.76000, the Forex pair climbed again and tested the 14.95000 level. And since then the USD / ZAR has created a rather intriguing downward movement.
Before heading into the weekend on Friday, USD / ZAR was trading near a low of 14.52000. However, after reversing to the upside again and temporarily touching the 14.65000 ratio yesterday, the USD / ZAR staged another round of selling and the current price of the Forex pair is near 14.42000. . After hitting as low as near 14.37,000 yesterday and seeing a slight reversal today, USD / ZAR is proving it is testing strong technical support.
The last time the USD / ZAR traded in its current price range was between the 16e and 19e July. These dates come just before the political and community unrest in South Africa began to gain international media attention. When the dazzling lights of media coverage shone on South Africa, financial institutions certainly started to become risk averse and a bullish movement was demonstrated via the USD / ZAR.
Traders now have a difficult decision to make. Technically the USD / ZAR is in sight of very important support levels, and if the 14.39000-14.37000 crosses start to look vulnerable, traders cannot be blamed for believing that the 14.36000-14, 32,000 are able to be tested. The South African Rand has certainly proven its resistance within the USD / ZAR over the past few trading days as significant bearish momentum has been displayed.
Traders who are against the grain and believe that current support levels will trigger higher buy reversals cannot be blamed, but they should probably look for short-term trading efforts with take-profit orders that don’t. are not too ambitious. Traders who believe the selling conditions remain attractive are also advised to use strict risk-taking tactics. Selling USD / ZAR on slight upward movements and placing tight stop loss and take profit orders may be the best method to approach this Forex pair in the short term. Any trading below the 14.32,000 mark by the USD / ZAR would be remarkable if it were to occur in the near term.
Short-term outlook for the South African Rand:
Current resistance: 14.45700
Current support: 14.38500
High target: 14 52 600
Low target: 14.32300