Consolidation maybe today, volatility tomorrow
USD/ZAR is trading near near-term lows at the time of this writing and speculators should consider a few important potential factors.
The USD/ZAR currency pair is trading near the 1.61100 mark at the time of this writing, which is close to some rather intriguing lows. Speculators should be careful today as it is a public holiday in South Africa and trading volumes may be lighter than normal. Price action early this morning saw the USD/ZAR currency pair drop to a depth near 16.57500, which tested support levels seen on Friday before a peak was reached.
A public holiday and the perception of a potentially oversold USD/ZAR could be dangerous
The lack of significant trades from South Africa today leaves USD/ZAR open to the possibility of sudden moves today. And when combined with technical perception, USD/ZAR may have been oversold yesterday and consolidated near Friday’s support levels, which is intriguing. However, traders should be careful today because while USD/ZAR has the potential for a consolidated Forex market, the currency pair is vulnerable to fluctuations in value in a lightly traded atmosphere that could look like a fake. -pretend.
Support near the 16.60000 area could prove interesting if it holds
Traders should use entry price orders to ensure they are not filled at a startling ratio that is completely unexpected today. Speculators should also be aware to expect a jump from 16.60100 to 16.63000 in a moment today meaning stop loss and take profit orders should work but quick results. could occur and reverse traders’ positions in the blink of an eye. eye. However, what is important for traders to also note is that today’s price action may raise trending false flags due to low volume, which also means the open tomorrow for USD/ZAR could produce fireworks if a move is exaggerated today and financial companies “correct” the trend.
- Rapid range trading can be seen today in USD/ZAR with light volume; traders should watch ratios from 16.60000 to 16.64000.
- If the price range of short-term technical support and resistance is broken today, traders should prepare for volatility tomorrow when full market action returns to USD/ZAR.
Ambitious speculators who believe that USD/ZAR was oversold yesterday and that support levels will produce upward mobility cannot be blamed. However, due to today’s low trading volume, a test of the “known” range can be demonstrated. If a trader wants to buy USD/ZAR and anticipate a potentially larger move, they may need to be patient or agree to hold a position overnight.
USD/ZAR short-term outlook
Current resistance: 16.64250
Current support: 16.59200
High target: 16.67800
Low target: 16.55700
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