(MENAFN- Daily Forex)

• The US dollar initially tried to rally during the trading session here on Wednesday but gave back some of the gains as we continue to form inverted hammers.
• In fact, four of the last five candlesticks are exactly that, just inverted hammers.
• This tells you just how difficult this bounce is being, with the 17.50 South African Rand level offering massive support going back multiple months, I think a lot of what's going on here is that people are not quite clear what the Federal Reserve is going to do, despite the fact that many people believe they will cut rates a couple of times between now and the end of the year.

The speech at Jackson Hole on Friday from Jerome Powell will be parsed very closely, as it could give us a little bit of a heads up as to where the Federal Reserve is going to go. If they continue to be data dependent, that might spook some people and run back to the US dollar overall.

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The South African brand obviously has a fairly high interest rate attached to it. So that does help, but it is hard not to notice that the 17.5 level has been like a brick wall as of late.

50 Day EMA Above

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The 50-day EMA is at the 17.7886 level and dropping, and the 200-day EMA is at the 18.06 level and dropping as well. So, I do think that we are range-bound and that there is a lot of noise above, but we are about to see a major decision with the US dollar overall.

EURUSD Chart by TradingView

And if the greenback really starts to take off against most currencies, the South African rand certainly won't be any different than the others around the world.

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