If you choose to trade the USD/ZAR today please be warned that trading volumes are extremely thin. It may prove difficult to find a broker willing to execute your trades today in some financial assets. South Africa is celebrating Boxing Day, thus all financial institutions in the nation are closed. Any trades filtering through the international realms today are happening with a limited amount of participants.
Top Regulated Brokers
Currently, the USD/ZAR is near the 18.45220 ratio, but traders should check this price as they examine their charts because the bid/ask in the currency pair is wide. Large spreads via prices being offered on the buy and sell sides today in the USD/ZAR could present problems for speculators who insist on participating. Entry price orders are highly encouraged for traders wanting to open a position in the USD/ZAR.
USD/ZAR Near-Term Price Range is Suspicious
The USD/ZAR traded bear the 18.20635 realm on Thursday of last week, as Forex markets reacted to weaker than anticipated U.S inflation numbers. Light holiday trading however started to be experienced by the end of Thursday and certainly continued into Friday. The incremental climb higher in the USD/ZAR might be a reaction from some financial institutions who believe the USD/ZAR became oversold, but the current price of the currency pair must be looked on with suspicion.
The USD/ZAR is still within the lower realms of its one-month price range, and is near values that have largely produced a lot of support since the first week of August. However, current conditions in global Forex seem to be shifting, and behavioral sentiment is demonstrating a weaker USD outlook for the coming months which could help the South African Rand have some strength on occasion.
USD/ZAR Short and Near-Term is Speculative
- Traders who are looking for reversals lower in the USD/ZAR to emerge cannot be blamed, but because of holiday trading conditions today and into tomorrow speculators need to be cautious and not get overly ambitious.
- Stop-loss orders are essential today to protect against strange trading results that could develop in the USD/ZAR due to large unbalanced orders suddenly being put forth.
- USD/ZAR trading volumes will remain thin for the remainder of this week, but today’s volume will be extremely light.
USD/ZAR traders participating today and into tomorrow need to understand the price range of the currency pair could prove to be rather technically inefficient. The USD/ZAR has drifted higher the past couple of days when it has traded, but these results are rather questionable, and speculators may not get a taste of real market sentiment until full trading volumes return.
USD/ZAR Short Term Outlook:
Current Resistance: 18.49300
Current Support: 18.44100
High Target: 18.53500
Low Target: 18.38520
Ready to trade our daily Forex forecast? Here’s some of the best trading platforms in South Africa to check out.