Ultimate magazine theme for WordPress.

USD/ZAR Bounces Between Key Levels


Rand Price Outlook:

The South African Rand continues to maintain a certain degree of strength against its major counterparts despite the vaccination program lagging behind both developed and Emerging Markets (EM). Despite the recent reopening of the economy, cash strapped power utility Eskom struggles to keep the lights on, resulting in the reimplementation of load shedding (rolling blackouts), an issue that has hindered economic output for the past decade, placing the economy in a recession prior to the Coronavirus pandemic.

Visit the DailyFX Educational Center to discover why news events are Key to Forex Fundamental Analysis

With the pandemic exacerbating the effects of the recession additional concerns include rising government debt, the high crime rate, corruption and a shrinking tax base, which are all factors that will likely limit the country’s ability to progress in the foreseeable future.

Introduction to Forex News Trading

Introduction to Forex News Trading

Recommended by Tammy Da Costa

Introduction to Forex News Trading

USD/ZAR Technical Analysis

USD/ZAR price action remains below the key psychological level of 15.00, although as inflationary concerns dissipated, a rebound in US Treasury Yields awakened a fresh demand for the greenback, pressurizing the volatile Rand.

With the final approval of Biden’s $1.9 Trillion package deal being priced into the markets, focus now resides with next week’s FOMC meeting, which is expected to include an array of important information, potentially catalyzing price action further.

Trading Forex News: The Strategy

Trading Forex News: The Strategy

Recommended by Tammy Da Costa

Can you prepare for news events?

South African Rand Dollar Price Forecast: USD/ZAR Bounces Between Key Levels

DailyFX Economic Calendar

From a technical standpoint, after retracing off of the 38.2% Fibonacci retracement level of the move between August 2020 high and the February 2021 low, bears managed to drive prices below prior support, formed by the 15.00 psychological level. Currently, prices continue to test the 14.4% Fibonacci retracement at 14.88, providing support for the pair while the Moving Average Convergence/Divergence (MACD) remains above the zero line, indicating that bullish momentum may still prevail, with a break of 15.00 seeing the next level of resistance holding at 15.19, the 23.6% retracement level of the above-mentioned move.

Starts in:

Live now:

Mar 15

( 11:03 GMT )

Join James Stanley’s Price Action Webinar

FX Week Ahead: Strategy for Major Event Risk

Register for webinar

Join now

Webinar has ended

USD/ZAR Daily Chart

South African Rand Dollar Price Forecast: USD/ZAR Bounces Between Key Levels

Chart prepared by Tammy Da Costa, IG

— Written by Tammy Da Costa, Market Writer for DailyFX.com

Contact and follow Tammy on Twitter: @Tams707


Source link

Leave A Reply

Your email address will not be published.