USD/ZAR Analysis Today - 11/11: Market Uncertainty (Chart)
Date
11/11/2024 2:31:42 PM
(MENAFN- Daily Forex) The USD/ZAR has opened with tranquil trading this morning and has returned to a slightly higher one week middle ground via technical charts.
Following a very predictable week of volatility the USD/ZAR has opened trading this morning with a slight run upwards. The currency pair is near the 17.62100 vicinity with a wide bid and ask spread in evidence. Last week's low in the USD/ZAR touched the 17.22600 area on Thursday in the wake of the U.S Federal Reserve interest rate cut, only to reverse higher and resume upwards realms of recent trading.
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Last week's volatility in the USD/ZAR which was rampant because of the U.S election reactions and the Fed's FOMC meeting, this week should subside. However, traders need to understand that shifting outlooks and trading positions within financial institutions will not be accomplished in a day. Folks who are trading on sentiment need to make sure they are not getting caught up in the noise of the Forex market, of which there is plenty still. There is a guessing game still being played USD/ZAR Considerations
The USD/ZAR has been stronger over a handful of months due to the ability of South Africa to create a coalition government and it being seen as a positive sign by financial institutions. This helped take the USD/ZAR from vulnerable highs and has helped create a lower trading realm. Since late September however, the USD/ZAR like most other currency pairs has seen bullishness emerge as risk adverse trading.
Now that the U.S election is finished and most of the counting is done, the USD/ZAR will once again start to focus on economic data which comes from the U.S and combines with domestic issues in South Africa fiscally. The U.S will release important inflation data this Wednesday and Thursday. The ability of the USD/ZAR to hit lows last Thursday when the U.S Federal Reserve cut its interest rate signals some bearish sentiment is lingering in the USD/ZAR. However, the short-term still needs to see behavioral sentiment become calmer/ZAR Fluctuations as Equilibrium is Sought
The USD/ZAR looks overbought taking into consideration the past few months of trading. Yet, the nervous mid-term higher range the currency pair is within may linger, and betting on a sustained trend downwards in the near-term may too ambitious.
Instead traders may want to use resistance levels that are perceived as a place to ignite wagers seeking some downside momentum that can be cashed out using take profit orders. The range of 17.64000 to 17.58000 may prove interesting over the next handful of hours in the USD/ZAR. As behavioral sentiment adjusts and begins to focus on economic data in the middle of this week, the currency pair can expect a wider range to emerge again.
USD/ZAR Short Term Outlook:
Current Resistance: 17.63600
Current Support: 17.61100
High Target: 17.65400
Low Target: 17.56200
EURUSD Chart by TradingView
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