Home Forex USD/ZAR Tests Key Fibonacci Support

USD/ZAR Tests Key Fibonacci Support

by kyngsam


Rand Greenback Worth Motion:

USD/ZAR value motion edged increased right this moment, buoyed by a lower in demand for Rising Market currencies together with US Dollar power. Regardless of the approval of an extra $1.9 Trillion US Fiscal Stimulus Bundle, the USD remained resilient as a rise in international Covid-19 associated instances mixed with rising US Treasury yields bolstered the demand for the safe-haven foreign money.

Given the present financial circumstances, the Rand remained resilient regardless of South Africa recording its best variety of deaths because the begin of the Coronavirus pandemic. Regardless of the reimplementation of extra stringent measures, the speedy unfold of the second wave continues to put immense strain on the economic system as a complete.

Introduction to Forex News Trading

Recommended by Tammy Da Costa

Introduction to Forex News Trading

USD/ZAR Technical Evaluation

After retreating from April highs, the formation of a Death Cross offered reduction for the bears because the Rand strengthened towards its US major counterpart. Nonetheless, after eight consecutive weeks of good points, USD/ZAR price action got here to a halt after falling to a key degree of help, fashioned by the 61.8% retracement degree of the 2018 – 2020 transfer, round 14.500. Now, because the battle between bulls and bears persists, value motion continues to commerce in a confluent zone, fashioned by the Fibonacci retracement levels which proceed to offer support and resistance for the pair.

Top Trading Opportunities in 2021

Top Trading Opportunities in 2021

Recommended by Tammy Da Costa

Get Your Free Top Trading Opportunities Forecast

USD/ZAR Weekly Chart

USD/ZAR Weekly Chart

Chart ready by Tammy Da Costa, IG

Presently, the downward pattern pertaining to USD/ZAR continues to carry, with the 78.6% Fibonacci retracement degree of the 2020 transfer offering help at a degree of 15.105. A break beneath help might lead to a retest of 14.500, offered that bears are in a position to break beneath the key psychological degree of 15.00. The Relative Strength Index (RSI) stays inside vary, with a present studying of 53, whereas costs have risen above the 50-Day Moving Average (MA) on the every day chart.

USD/ZAR Day by day Chart

USD/ZAR Daily Chart

Chart ready by Tammy Da Costa, IG

Week Forward

With the reimplementation of recent lockdown restrictions, this week’s inflationary information and Rate of interest resolution will probably be an extra driver of value motion. Though consensus stays in favor of charges remaining unchanged, any shock cuts by the South African Reserve Financial institution (SARB) will probably lead to a rise in volatility and additional whipsaw value motion.

South African Rand Price Forecast: USD/ZAR Tests Key Fibonacci Support

DailyFX Economic Calendar

— Written by Tammy DaCosta, Market Author for DailyFX.com

Contact and comply with Tammy on Twitter: @Tams707





Source link

Related Articles

Leave a Comment