- In early trading this morning the USD/ZAR has come off highs produced when the day began.
- The USD/ZAR is around the 18.67100 price as of this writing after touching a mark near the 18.77640 briefly today.
- The currency pair has established a rather polite price realm the past week between the 18.56000 to 18.72000 marks with outliers happening on occasion.
Traders should note that U.S banks will be largely absent from the financial markets today as the MLK holiday is observed. This means forex markets will be rather light today, but will also create the potential for volatility on Tuesday as full volumes emerge and financial institutions begin to react in full to last week’s U.S inflation reports which caused rather dynamic results.
Technical Speculative USD/ZAR Considerations
Short-term traders of the USD/ZAR price should be nimble today and look for quick hitting results. The price range of the currency pair does look attractive technically, but thin market conditions could allow for unsuspected price velocity. Traders looking at support ratios near the 18.62500 to 18.61500 in the short-term may have these targets in mind. However, because of light Forex trading affecting the USD/ZAR due to the U.S holiday risk taking tactics should be using take profit and stop loss orders with discipline, and speculators will have to adjust according to short-term ranges that emerge.
Behavioral sentiment remains a key looking forward and financial institutions may continue to believe the outlook of the USD is weaker. Economic data from the U.S on Wednesday will deliver Retail Sales figures which will likely be the prime instigator regarding USD risk appetite. Last weeks’ inflation data was a mixed bag, but Friday’s weaker Producer Price Index numbers before going into the weekend likely made financial institutions a bit more confident regarding their belief the U.S Federal Reserve will start to show more dovish monetary policy.
Tomorrow’s USD/ZAR Trading will be a Looking Glass
Today’s trading in the USD/ZAR may remain rather conservative, but speculators should brace for the potential of more price velocity developing on Tuesday.
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Resistance levels may prove to be important around the 18.68000 to 18.71000 levels today, if they prove durable this could set the ground for the potential of more selling in the USD/ZAR near-term.
Traders pursuing lower moves in the USD/ZAR should be willing to cash out profits and not become overly ambitious, because short-term reversals will remain a feature of the currency pair today.
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