USD/ZAR Analysis Today - 28/10: Back To Neutral (Chart)

(MENAFN- Daily Forex) The USD/ZAR hit a high of nearly 17.86300 on Wednesday after last week, but since touching this high the currency pair has returned to a known price range amidst a nervous global Forex market.

• The USD/ZAR climbed quickly last Wednesday moving from around the 17.50000 level, and suddenly challenging the 17.86300 value which had last been seen in the second week of September.
• And then the USD/ZAR began to drift downwards and returned to its known range which could be called a near-term middle ground.
• The price of the USD/ZAR is trading near the 17.67800 mark at the time of this writing depending on the bids and asks being demonstrated, the spread in the currency pair is wide for the moment.
• Traders should not be fooled by what appears to be short-term price movement, because it will likely vanish.

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It is important to point out that the combustible values seen in the USD/ZAR are a reflection of the nervous energy in the global Forex market for the moment. And day traders have to be aware this rather volatile behavioral sentiment is not going to disappear anytime soon. The U.S election is almost one week away and financial institutions are nervous. However, nervousness also exists because of important U.S economic data that will be published this coming week. The middle ground of the USD/ZAR within a fast global Forex atmosphere is a healthy sign, but things are not calm Traders and Risk Management in the USD/ZAR

Traders not accustomed to fast markets and the potential of sudden spikes might want to watch the USD/ZAR and study graphs over the short-term before putting on a position. The range of the USD/ZAR continues to linger within the higher part of the one month technical chart, but most major currencies have suffered the same fate as the South African Rand against the USD centric strength the past few weeks.

Risk management in the USD/ZAR is essential, it always is, but trading the remainder of this week will likely grow in intensity. What looks like tranquil prices could turn into spikes in the blink of an eye. On Wednesday the U.S will release its Advance GDP numbers; the growth data will cause a reaction in the USD/ZAR. Thursday will see U.S inflation statistics. And on Friday the Non-Farm Employment Change results will be published. That is quite an onslaught of data for financial institutions to deal with typically. But there is more to come/ZAR Volatility will Hit a Climax Next Week Perhaps

The U.S economic data is certainly crucial for the USD/ZAR exchange pair . However, the U.S election results and the Fed's FOMC Meeting next week will follow. In other words any trader tempted to look for price action in the USD/ZAR will find it over the coming days, but speculators might not like what they find.

• Strict ordering needs to be practiced.
• Those who think the USD/ZAR is overbought may be proven right, but attaining a sustained lower trend in the short-term may prove to be wishful thinking.
• In order to take advantage of correct wagers on the USD/ZAR per technical directions, traders will likely need to use profit orders working to cash out of positions.

EURUSD Chart by TradingViewUSD/ZAR Short Term Outlook:

Current Resistance: 17.69400

Current Support: 17.67090

High Target: 17.73300

Low Target: 17.65100

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