USD/ZAR Analysis Today - 08/07: Seeking For Balance (Chart)

(MENAFN- Daily Forex) The USD/ZAR traded at a low for the week upon opening this morning, this as financial institutions continue to battle over perceived equilibrium which opens the door for speculators.

  • The USD/ZAR currency cross briefly touched the 18.11475 vicinity early today this after opening following the weekend break, but then reversed higher quickly.
  • The USD/ZAR is currently near the 18.21100 ratio with fast trading been seen.
  • Last week's high in the currency pair went towards the 18.66445 mark on Tuesday the 2nd of July before beginning to trade lower.
  • The back and forth price range of the USD/ZAR has been intriguing and has been an opportunity for traders who believe financial institutions are still trying to figure out equilibrium in order to create balanced value.

There are no guarantees but the top part of the USD/ZAR range if it is challenged around the 18.40000 to 18.50000 levels does appear high. However, now that the USD/ZAR has reestablished its lower depth and is within sight of support ratios, perhaps the top part of the near-term range will prove too high in the near future. There are still many questions that need to be answered in South Africa to make financial institutions feel optimistic and no one should expect paradise quite yet. Traders should also remember the U.S will return to full trading volume today and tomorrow following their holiday.

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Support Ratios and the USD/ZAR

Having come within sight of the 18.10000 ratio early this morning upon opening is a sign bearish sentiment remains optimistic within the South Africa Rand. This level could prove to be a target for some large players, but day traders should not be overly ambitious and might want to aim for closer goals in order to cash out profitable traders, perhaps around the 18.18000 to 18.17000 ratios.

Trading in the USD/ZAR will be impacted later this week by inflation data from the U.S via the CPI and PPI numbers on Thursday and Friday. Until then behavioral sentiment will likely dominate the USD/ZAR. Domestically there has been news that the government owned electric company, Eskom, has created a fiscal hole by purchasing large amounts of diesel fuel. Nevertheless, Eskom has managed to refrain from loadshedding and this has helped productivity. The South Africa Parliament will begin its official season on the 18th of July and this will get attention from financial institutions Range is Enticing in the USD/ZAR
  • Traders may feel tempted to look for downside in the USD/ZAR if it is touching the 18.20000 or higher values.
  • However, risk taking should be done with proper management of tactics including take profit orders and the use of conservative stop loss techniques.
  • The range of 18.15000 to 18.24000 may prove intriguing in the short-term, but speculators need to understand the USD/ZAR can move fast and still has the ability to surprise with volatile price velocity.
USD/ZAR Short Term Outlook:

Current Resistance: 18.22150

Current Support: 18.19900

High Target: 18.27600

Low Target: 18.16300

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