USD/ZAR Analysis Today - 23/09: Bearish Trend Continues
Date
9/23/2024 3:00:10 PM
(MENAFN- Daily Forex) The USD/ZAR has been able to challenge long-term lower price realms, and early trading this morning has displayed an ability to remain bearish regarding the currency pair's trend.
As of this writing the USD/ZAR exchange rate is traversing near the 17.39825 ratio with fast changes of value. However, while the USD/ZAR is demonstrating rapid fluctuations, the currency pair remains solidly within the scope of its long-term price technically. Traders will have to pull out 5 year charts to start considering potential values if they continue to believe the bearish trajectory is going to remain intact.
The USD/ZAR continues to trade in a healthy correlation with the broad Forex market as USD centric weakness has been maintained widely. The combination of growing optimism in South Africa regarding the coalition government's fiscal management has also helped create better behavioral sentiment in financial institutions. Certainly there is still a wide array of concerns facing South Africa, but issues concerning corruption and poor infrastructure are now being heard and in some cases managed.
Top Forex Brokers1 Get Started 74% of retail CFD accounts lose money USD/ZAR Heritage Day Trading on Tuesday
Tomorrow is Heritage Day in South Africa, so speculators outside of the country should acknowledge volumes will be extremely light, meaning bid and ask pricing in the USD/ZAR on Tuesday will widen.
Traders should consider closing their positions going into tomorrow, if they do not want to experience the potential of awkward fluctuations creating momentary chaos because of thin transactions.
The bearish trend in the USD/ZAR has been strong and values are touching ratios last seen in late January of 2023 in a sustained manner. And intriguingly when prices were near the 17.30000 to 17.40000 realm during late January in 2023, the USD/ZAR was within a bullish trajectory, meaning prices were rising. This creates the perspective the USD/ZAR because of improving behavioral sentiment currently may be able to continue to move lower. However, traders cannot bet with their eyes closed and simply believe a downwards trend will be attained easily. There will be many trading battles ahead which will have to have positive outcomes to continue lower momentum for the USD/ZAR. A firm 17.30000 to 17.40000 price realm in the currency pair has yet to be established this time around and it may take patience for it to emerge.U.S Economic Data and the USD/ZAR
After the conclusion of the Heritage Day celebration in South Africa, traders can expect full volumes quickly to be demonstrated on Wednesday. Financial institutions will brace for the U.S GDP numbers which will be published on Thursday. Also Fed Chairman Jerome Powell will be speaking to a conference. The U.S central bank has expressed dovish sentiment; they have cut their interest rate and may do so again in November.
Yet, U.S economic data now needs to match expectations. The ability of the USD/ZAR to traverse lower last week was positive, and in the middle of this week traders may see some choppy outcomes as the U.S data is awaited. Traders should not get overly ambitious regarding their targets in the near-term and be prepared for slight reversals to be seen.
USD/ZAR Short Term Outlook:
Current Resistance: 17.41100
Current Support: 17.39100
High Target: 17.46500
Low Target: 17.36700
Ready to trade our daily Forex forecast ? Here's some of the best trading platforms in South Africa to check out.
MENAFN23092024000131011023ID1108705551
Legal Disclaimer:
MENAFN provides the information “as is” without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the provider above.