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The USD/ZAR has traversed within its upper price range for the past week, frequently trading above the 17.00000 level with a couple instances of sharp reversals lower.
The USD/ZAR currency pair is trading near the 17.10000 mark as of this writing with fast conditions continuing to be demonstrated. After surpassing the 17.00000 value last week the USD/ZAR has been able to sustain its new apex highs, with an occasional burst of downwards price action too which has tested support levels. Technical traders may becoming comfortable with support near the 17.00000 level, but yesterday the USD/ZAR did fall to a low of nearly 16.94800, which broke a low on Monday of 16.9600.
Higher Price Range of USD/ZAR Producing Volatile and Speculative Conditions
The ability of the USD/ZAR to repeatedly display a sudden flurry of reversals lower opens the door to speculative opportunities for traders willing to wager. Within the volatile conditions as the USD/ZAR bounces along within the upper regions of its apex highs, choppy results will likely remain normal and speculators need to use risk management effectively.
While a strong downside has been displayed, support continues to prove rather durable. Which opens the possibility of igniting buying positions near perceived support, and selling positions near observed resistance for traders with enough emotional strength to allow the USD/ZAR currency pair to generate power. As the USD/ZAR transacts within this higher price range, traders must be braced for outliers as technical results are challenged.
The ability of the USD/ZAR to stay above the 17.00000 consistently is Bullish
Speculators who prefer sticking to one trading mode and not changing their tactical pursuit of the USD/ZAR likely still believe the currency pair remains in a bullish trend. Essentially since the last week of March the USD/ZAR has been moving with an upwards stance, but it must be said strong reversals lower have been demonstrated too. The trajectory of the USD/ZAR has not been a one way avenue.
- If the USD/ZAR remains above the 17.10000 level short term this could spur on additional buying sentiment.
- Traders must be prepared for the potential of sharp reversals within the upper tier of the USD/ZAR as financial institutions try to find equilibrium within these higher values.
If the USD/ZAR is able to sustain price momentum consistently above the 17.10000 this may prove to be rather bullish. Traders who are looking for more upside should remain realistic about their price targets however, because as the USD/ZAR tests this upper price range volatility is certain to be produced. The near term will likely continue to see rather fast results and traders should use entry price, stop loss and take profit orders to remain conservative.
.USD/ZAR Short-Term Outlook
Current Resistance: 17.14200
Current Support: 17.06200
High Target: 17.23300
Low Target: 16.93100
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