(MENAFN- Daily Forex) The USD/ZAR is near the 17.35500 realm as of this early morning with a wide spread being seen as financial institutions start their new week in the aftermath of the U.S Fed decision last Wednesday.

The USD/ZAR is trading remarkably close to values it flirted with before the U.S Federal Reserve's interest rate cut decision last Wednesday. The USD/ZAR is correlating to the broad Forex market well and has essentially produced a sideways consolidated range since early last week. However, because of the U.S Central Bank's rate decision last week some trading details should be examined.

First and foremost it is evident financial institutions dealing with the USD/ZAR largely were not surprised by the outcome of the U.S Fed's actions and rhetoric last Wednesday. Upon the interest rate being announced the USD/ZAR fell to a low around the 17.25350 vicinity, but the low was not sustained and the currency pair then quickly ripped higher towards a high of 17.48250 by Thursday.

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The move higher on Thursday was a reaction to sentiment being generated which suggested the Fed will take a wait and see approach to U.S data after October – another rate cut is anticipated late October but after that questions remain regarding inflation Was Speculated Upon Beforehand

The USD/ZAR now finds itself trading within the lower elements of its long-term price range, but still has support levels below that some may feel should be targeted. Speculators should be careful and not be overly ambitious with their lower projections. The USD/ZAR continues to show a solid amount of support near the 17.30000 level. Sustained trading below this value has been hard to maintain.

While the Fed certainly cut its interest rate last week, the move was anticipated, meaning it was priced into the USD/ZAR before the announcement. The USD/ZAR hit a low via a spike, but the move higher showed that financial institutions understood they are essentially back to testing a known realm in the currency pair. Big traders will still want more impetus to create a new value range.

EURUSD Chart by TradingViewConsolidation and Near-Term Trading

Since the 11^th of September the USD/ZAR has shown an ability to trade below the 17.40000 ratio rather well.

• Day traders may be intrigued by the thought the USD/ZAR can go lower, durable support stands in the way however.
• Perhaps for the moment it will be wise to merely test support and resistance levels between 17.31000 to 17.36000 for quick hitting speculative attempts.
• U.S GDP data will be released this coming Thursday and Friday will see an important inflation report.
• Until these two reports are released, financial institutions will likely test their short-term sentiment within the known range which has been rather steady the past week.

USD/ZAR Short Term Outlook:

Current Resistance: 17.35700

Current Support: 17.34500

High Target: 17.37600

Low Target: 17.31500

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