(MENAFN- Daily Forex) The USD/ZAR has continued to challenge lower values over the past few days as financial institutions clearly demonstrate a willingness to believe the bearish trend has merit.

The USD/ZAR is near 17.06500 depending on bids and asks as the currency pair displays its consistently present wide spread for day traders to speculate on. The USD/ZAR on Thursday of last week fell to a depth around the 16.94850 ratio momentarily, but then reversed upwards when it was deemed oversold conditions warranted some buying. Having returned back above the 17.00000 on Friday of last week saw a brief violent spike upwards that likely hurt speculators when the 17.20000 level was flirted upon.

Friday's trading action was a grim reminder to day traders leaning into the rather strong lower trend in the USD/ZAR that profits do not come for free. The fast conditions in the USD/ZAR are a frequent threat and speculators need to understand that too much leverage and a lack of stop losses can lead to having an account wiped out.

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The USD/ZAR has correlated to the broad Forex market in many senses, but the downward trajectory of the currency pair has been rather captivating for speculators. Financial institutions must still contend with rather easy to define fiscal concerns in South Africa, but have been able to display a rather constant ability to produce a lower trend. The 17.0000 is clearly in view and may continue to be a target for some traders, but it might prove a difficult result to grasp for those who have limited time and funds.

Cautious attitudes may still be a large talking point in global markets early this week. Even though the U.S government shutdown has ended, narrative about the U.S Federal Reserve remains murky regarding its next moves. The USD could remain rather choppy in Forex and cause some turbulence in the short and near-term for the USD/ZAR. Quick hitting targets in either direction – up or down – should remain a fixture for day traders.A Return to Lower Values and Nervousness

The ability of the USD/ZAR to traverse lower and sustain values below the 17.10000 mark are important if it can prove able to be kept in the near-term. A rather wide range may continue to be seen in the USD/ZAR that exhibits rather fast fluctuations for speculators.

• Financial institutions while clearly pressing into the lower long-term realms of the USD/ZAR likely continue to be rather skittish about the currency pair's ability to sustain values below 17.00000.
• Make no mistake that the 17.00000 is the talking point among large players and the South African public.
• For now the realm remains a target that is in plain sight, but difficult to achieve consistently.
• Today and tomorrow are likely to see fights around this vicinity with swift reversals that could be volatile like the trading produced last Thursday and Friday.

EURUSD Chart by TradingViewUSD/ZAR Short Term Outlook:

Current Resistance: 17.07000

Current Support: 17.04300

High Target: 17.10100

Low Target: 16.98900

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