The USD/ZAR continues to traverse near important long term support levels as traders try to gauge where the next wave of momentum will surge.
The past week of trading within the USD/ZAR has seen the forex pair create a consolidated range. Speculators certainly have direct evidence staring them in the face that important support levels are being tested. The USD/ZAR has been within the grip of a solid bearish trend and the values being confronted now have not truly been broken lower since February 2019.
While that information is important, the fact that the USD/ZAR has traversed downward does not mean its immediate direction is easily known. Actually predicting the direction of the USD/ZAR may be more complicated because of the rather strong bearish trend the forex pair has enjoyed. That is because after proving its downward trajectory has been strong, the surge lower will certainly cause some technical traders to contemplate that it may be time for the USD/ZAR to become more tranquil and create a balanced equilibrium regarding its value, which means small reversals higher can be anticipated.
This test of current values has not been experienced since February of 2019 and creates the speculative perception the USD/ZAR could now be in a position to target prices within the junctures of 13.58000 to 13.38000. Pinpointing the immediate direction of the USD/ZAR is speculative, but the trajectory of the forex pair is within eyesight of important values which were last traded with consistency in January of 2019.
As of this morning the USD/ZAR continues to push up against important support near the 14.69000 juncture and lows made near the 14.67000 are extremely close. Having traversed near the 14.67000 price on the 27th of May, traders need to understand the last time the USD/ZAR hit that value was in early February of 2019. If this support juncture proves vulnerable traders may expect another race downwards to be ignited.
However, trying to keep a cautious amount of perspective on the ability of the USD/ZAR to move violently downwards should be considered. Perhaps the next support level for the USD/ZAR rest near the 13.59000 level, and if this mark is approached it will likely prove a key inflection point for the forex pair. Selling the USD/ZAR on slight reversals higher, which approach the 13.73000 to 13.75000 and using the 13.80000 juncture as a stop loss could prove to be a worthwhile trade near term for speculators. Traders should not get overly greedy; trying to anticipate a massive move in forex can often prove to be a costly mistake.
South African Rand Short Term Outlook:
Current Resistance: 13.80000
Current Support: 13.67500
High Target: 13.88000
Low Target: 13.59000