(MENAFN- Daily Forex) The USD/ZAR is near the 17.24700 ratio as of this writing, this as financial institutions practice a relatively cautious trading landscape in the broad Forex markets as the U.S government shutdown continues.

The USD/ZAR has practiced a rather consolidated trading range the past week and the 17.24700 vicinity is seeing some traction. Since the U.S government shutdown ensued Forex markets have seen rather tight ranges start to be practiced. Financial institutions appear unready to flex their muscles in a particular way until they have a clear outlook, however that narrative actually may be incorrect. Instead, it can be said the USD/ZAR has been able to maintain its lower trading realms which it has been traversing since the 12^th of September.

The USD/ZAR has been able to maintain value rather consistently below the 17.50000 ratio since the 12^th of September, and in fact the 17.35000 mark may be viewed as rather consistent resistance by technical traders who look at charts consisting of one week and longer. The U.S shutdown looks ready to continue stubbornly into the coming days, but financial institutions appear calm. Support levels need to be studied too.U.S Federal Reserve and the USD/ZAR

Today essentially marks the sixth day of the U.S shutdown and official economic data from the U.S government is in short supply. However, the lack of the Non-Farm Employment Change numbers last Friday didn't cause much of a nervous reaction, because large traders have their eyes on the Federal Reserve's interest rate decision that will come in late October. The Fed is expected to cut the Federal Funds Rate by another 25 basis points when the FOMC decision is announced on the 29^th of October.

The USD/ZAR has been able to traverse a lower range, but also has not been able to sustain values below the 17.20000 level in a durable manner, although it has certainly flirted with the price since the last week of September. Sellers may believe the USD/ZAR needs to eventually move below this ratio, but for the moment this thinking may be too ambitious. Traders should be content with quick hitting targets using take profit orders.

Calm Waters but Nervous Results in the USD/ZAR

Like most other major currencies battling the USD at this moment, while the South African Rand has shown some strength it is also clear financial institutions are not ready to commit to a trend that pushes USD centric weakness too much for the moment.

• The 17.21700 may be a logical place to look for downside action in the short and near-term.
• Sustained lower price action currently may not get enough impetus today.
• This could all change if the U.S government somehow ends its gridlock regarding a spending bill.
• A consolidated support level also makes the USD/ZAR opportunistic for technical traders near-term as long as the U.S shutdown lingers.

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USD/ZAR Short Term Outlook:

Current Resistance: 17.27300

Current Support: 17.24300

High Target: 17.30800

Low Target: 17.21500

EURUSD Chart by TradingView

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