The USD/ZAR has rebounded from early lows and has broken short-term technical resistance as it trades near a high, but the Forex pair remains in a known range.
The USD/ZAR is trading near the 15.90000 mark in early trading today, but it has shown the ability to climb from yesterday’s low of nearly 15.79000. However, the USD/ZAR seems like it is within a rather known trading range technically. Holiday trading will start to become prevalent over the next 24 hours as financial institutions begin to shutter for Christmas. Speculators who want to participate in Forex the remainder of the week may find an opportunity to take advantage of the range if resistance and support levels prove durable.
Holiday trading can take on a dark tone unfortunately for the inexperienced, because a lack of large transactional volumes from institutions sometimes leaves price ratios vulnerable if a large trade is suddenly conducted. Spikes are a frequent visitor to Forex around this time of year and traders need to be prepared for the occasional surge which can develop in any direction. Because Christmas Eve falls on Friday, there is the possibility trading will remain rather robust until tomorrow, but speculators should be prepared for the USD/ZAR to suddenly get rather quiet.
The 15.95000 mark looks to be interesting resistance short term, and if does not maintain its strength there is a legitimate chance the 16.0000 juncture could see a test. Trading to the downside has proven to be strong too in the past couple of days and lows near the 15.730000 were produced on the 20th of December.
While global equity indices have shown signs of nervous sentiment the past week with rather stark declines being demonstrated, there have been positive days of trading too. The USD/ZAR does remain in the upper realms of its long-term values when a one-year chart is glanced. The question is what will happen in the short term as financial houses begin to decrease their participation; typically a rather strong dose of range trading ensues. This leaves speculators to decide how far away they should place take profit and stop loss orders as targets, to take advantage of what could develop into a rather intriguing range.
Downside momentum has shown a tendency to be stronger the past couple of days, but reversals higher towards resistance have certainly been exhibited too. If current resistance is sustained near the 15.92000 to 15.95000 levels, speculators may be tempted to wager on short term selling positions which seek quick hitting results.
South African Rand Short-Term Outlook
Current Resistance: 15.95500
Current Support: 15.84000
High Target: 16.0200
Low Target: 15.73000
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