The broad Forex market remains cautious about short and near-term outlooks regarding currencies versus the USD. Early morning trading today saw major currencies like the South African Rand gain against the USD, but caution has swept again into the global marketplace. The USD/ZAR which displayed values on trading platforms early today below the 16.50000 realm, is now around the 16.62430 ratio depending on bids and asks being demonstrated.
Day traders should expect fast conditions to continue into later this afternoon and evening as volumes increase as North American financial institutions begin to maneuver in the Forex market. Conditions have been choppy early on as the price of Crude Oil has shown nervous volatility once again. WTI Crude Oil via the spot price is around $106.00 and this will not allow analysts to feel calm. The ramifications of higher inflation and consumer prices that remain elevated longer than expected will play into the Forex market.
USD Centric Tantrums
The USD/ZAR may look overbought to some speculators, but betting on a sudden brisk optimistic risk taking attitude to develop, and a downturn in the currency pair with sustained strength may be wishful thinking. While it appears financial institutions believe a lower USD/ZAR is in the outlook, this morning’s lower ratios but reversal upwards later that followed showed sentiment remains fragile.
USD centric strength still must be given respect by day traders. While some may believe the 16.60000 level and above is overbought, it doesn’t take a technical expert to see higher prices have been seen steadily – even though they have occurred in a rather choppy fashion. The short and near-term will likely remain under the power of shifting sentiment that is difficult to gauge globally.
Looking for Evidence that USD/ZAR will Choose a Direction
Speculators need to remain cautious. Looking for a sustainable momentum in the short and near-term will be hard fought. The USD/ZAR may attract selling wagers, but traders should not get overly ambitious.
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The Iranian war still remains laden with loud rhetoric and threats and financial institutions are reacting to the news developments nervously.
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The USD/ZAR in the meantime will likely continue to test its rather higher range it now lingers within.
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The mid-term outlook for the currency pair remains under questionable conditions due to a rather turbulent global picture that lacks clarity.
USD/ZAR Short Term Outlook:
Current Resistance: 16.63150
Current Support: 16.62200
High Target: 16.65200
Low Target: 16.57500
