USD/ZAR: Long Term Highs Challenged as Surge Upwards Builds – 26 September 2022
The USD/ZAR is trading near the 18.04000 ratio as of this writing as it again moved upwards and is making new highs.
The USD/ZAR currency pair has moved higher again in early trading this morning and the current price of the currency pair is near 18.04000 with dynamic conditions on display. Speculators need to be cautious as global Forex produces fast results across the board and financial houses internationally are certainly displaying nervous behavioral sentiment. The USD/ZAR went into the weekend around the 17.92000 mark.
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Climb Upwards in USD/ZAR this Morning has Surpassed Highs of December 2015
The USD/ZAR is now trading above highs seen in late 2015 and this is significant, because until coronavirus in 2020 the record high of the Forex pair was near the 17.85000 mark. Yes, the highs of the USD/ZAR did hit the 19.38000 vicinity in March of 2020, but those trading conditions could have been looked at as a ‘special circumstance’. The notion the USD/ZAR has now climbed above 18.00000 and is showing signs of sustaining its momentum short term will sound alarm bells. A high of nearly 18.08000 was achieved this morning before a slight reversal lower took place.
The bullish trend of the USD/ZAR has been sincere and the currency pair continues to react to the U.S Federal Reserve’s interest rate policy. Additionally, nervous financial markets are also having an effect and speculators need to remain careful in the near term. Pursuing the upwards momentum of the USD/ZAR may continue to prove profitable, but traders need to be ready for volatility and the potential of sudden reversals occurring.
Last Week’s Thursday Lows are Intriguing in the USD/ZAR
On Thursday of last week the USD/ZAR moved to a low of nearly 17.44000, a value it had not tested since the 15th of September.If the 18.00000 level is sustained this could produce more nervous buying of the USD/ZAR.
The current trading range of the USD/ZAR is new and the movement upwards will have to prove it can be sustained in the near term. Psychological value above the 18.00000 feels significant in the USD/ZAR, and if sustained could produce ignition of more buying which pursues the 18.08000 ratio for quick hitting take profits. However, traders need to understand current forex conditions are fast and choppy, thus risk management is essential for short term bets.
The highs being achieved by the USD/ZAR are being reflected in many currency pairs versus the USD, which continues to be strong. Looking for reversals lower based on the notion the USD/ZAR is too high may prove correct, but the question is when the downturn will legitimately begin? It may not be today. The near term will likely continue to produce nervous results in the USD/ZAR as global markets remain fragile.
USD/ZAR Short Term Outlook:
Current Resistance: 18.06500
Current Support: 18.00100
High Target: 18.11900
Low Target: 17.96300
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