USD/ZAR Analysis Today 10/02: Tests Key Support (Chart)

(MENAFN- Daily Forex) After gapping higher in early trading this morning the USD/ZAR has seen some selling and the currency pair is within a known price realm as financial institutions battle nervous sentiment.

The USD/ZAR gapped higher early this morning as financial institutions clearly reacted to President trump once again putting South Africa in the spotlight late last week. However, after reaching a high of nearly 18.65900 on the opening, the USD/ZAR has seen solid selling come into focus and as of this writing the currency pair is traversing near 18.43500 with swift trading on display and wide spreads.

Day traders need to be careful with the USD/ZAR in the near-term because noise from afar may continue to provoke financial institutions reactions. Yet it is important to note that after the initial storm this morning that calmer heads seem to be prevailing. The current price of the USD/ZAR is near important support and this opens the door for speculative perceptions.

Top Forex Brokers1 Get Started 74% of retail CFD accounts lose money 18.40000 Ratio as Important Speculative Territory

The 18.40000 level below via a simple glance at a three month chart shows the USD/ZAR has used this ratio as a support since the third week of December. Sentiment may be nervous among financial institutions, but President Trump's attention the past week and a half has not caused a sustained firestorm of USD/ZAR buying. Yes, the currency pair did flirt with 19.00000 level last Monday, but this had more to do with USD centric buying as U.S tariff noise created four solid hours of volatility in global Forex.

Certainly storms caused by President Trump are not over. The South African government at some point should probably try to find a way to speak with the White House administration to see if they can begin to create a better dialogue. However, a game of political egos seem to be battling for the moment. The idea that the USD/ZAR is going to see a sustained selloff may be a bit too much wishful thinking short-term and Short-Term Trading in the USD/ZAR

Support near the 18.40000 must be watched and possibly used as a place that could spark reactions as financial institutions judge their mid-term outlooks based on existing noise. Traders should look at the current price ratios as a place to look for potential quick wagers.

• The 18.43000 to 18.42000 levels may provide opportunities to look for fast reversals upwards.
• The USD/ZAR will remain in the spotlight as a currency pair to monitor because of the actions being taken by President Trump.
• Behavioral sentiment in the USD/ZAR will remain the key focus in the short and near-term.

EURUSD Chart by TradingViewUSD/ZAR Short Term Outlook:

Current Resistance: 18.45400

Current Support: 18.42600

High Target: 18.51300

Low Target: 18.40700

Ready to trade our daily Forex analysis ? Here's a list of the best forex trading platforms South Africa to choose from.

MENAFN10022025000131011023ID1109189952