USD/ZAR Analysis Today: Sideways With Spikes (Chart)
Date
10/21/2024 4:42:48 AM
(MENAFN- Daily Forex)
In the past couple of days the USD/ZAR has traded slightly lower and is maintaining what can be argued to be a sideways trajectory as caution takes hold of Forex markets. The USD/ZAR is trading near the 17.64350 ratio with fast bid and ask fluctuations being demonstrated. The USD/ZAR touched a high of nearly 17.80050 in a quick hitting manner on Thursday, only to see a swift reversal lower and sustained prices near 17.60000 going into the weekend. The USD/ZAR started out last week's trading near the 17.58500 mark.
Day traders may argue against the phrase 'sideways price action' but the USD/ZAR has seen a rather tight range the past week, except for the outlier on Thursday when the 17.6800 resistance level started to prove vulnerable for a handful of hours and buying was strong. The return to 'known' prices the past two days of trading highlights the caution being seen in the broad Forex market globally.
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Some day traders may not want to think about the potential election results on the 5th of November causing rather fragile sentiment in the markets, but it is likely occurring. The U.S election is almost two weeks away and financial institutions are certainly starting to position their outlooks on potential outcomes. The USD/ZAR showed a significant amount of support near the 17.54000 ratio last week, yes the currency pair did trade below the mark but it the level could prove important as a place to monitor in the coming days.
The U.S will release manufacturing data this week, but in essence the real storyline is about getting past this week and into a dynamic countdown as the U.S election draws near. Trading may remain rather cautious this week and day traders may be able to take advantage of technical perspectives. Risk management as always will be important in the USD/ZAR. Support and resistance ratios may remain rather similar to last week's results. There are no guarantees, but it would not be surprising Wagering and Opportunity
The USD/ZAR has remained well correlated to the broad Forex market. Financial institutions are going to be wary of making large speculative bets about USD centric sentiment this week. Yes, they certainly have an opinion on what will happen in the U.S election, but there is still enough time for missteps by one of the candidates which could change perceived outcomes.
EURUSD Chart by TradingView
Getting through this week carefully may be the main concern for financial institutions and this opens the door to day trading opportunities technically.
Traders should not get overly ambitious and use take profit orders when targets appear.
The upside seen in the USD/ZAR over the past couple of weeks may appear overbought, but traders should not expect a large correction downwards to take place quite yet/ZAR Short Term Outlook:
Current Resistance: 17.65400
Current Support: 17.63100
High Target: 17.69800
Low Target: 17.57200
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