News & Analysis at your fingertips.

We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site.

0

Notifications

Notifications below are based on filters which can be adjusted via Economic and Webinar Calendar pages.

Live Webinar

Live Webinar Events

0

Economic Calendar

Economic Calendar Events

0
Free Trading Guides
Subscribe
Please try again
EUR/USD
Bullish
Oil - US Crude
Bullish
Wall Street
Bearish
Gold
Mixed
GBP/USD
Bearish
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
USD/JPY
Mixed
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
More View more
Real Time News
  • RT @FxWestwater: $NZDUSD, $NZDJPY React as Soaring Treasury Yields Skew Market Risk Profile Link: https://www.dailyfx.com/forex/fundamental/daily_briefing/daily_pieces/asia_am_briefing/2021/02/26/NZDUSD-NZDJPY-React-as-Soaring-Treasury-Yields-Skew-Market-Risk-Profile.html?CHID=9&QPID=917708&utm_source=Twitter&utm_medium=Westwater&utm_campaign=twr $TNX https://t.c…
  • Biden authorized strikes on Iran-backed militant groups. Strike was in response to attacks on US, coalition forces -BBG citing DOD #CrudeOil
  • The commodity-sensitive Canadian Dollar may continue outperforming its major counterparts in the coming weeks. USD/CAD, CAD/CHF, CAD/JPY and EUR/CAD key levels to watch. Get your market update from @DanielGMoss here:https://t.co/KYdUv2lpFC https://t.co/ZZUJ4AZEhc
  • Market Snapshot: Risk aversion is deepening as Friday APAC trade gets going $NZDUSD and $AUDUSD sinking Following declines in #SP500 and #Nikkei225 futures #USD broadly higher, anti-risk Japanese #Yen as well US 10-Year Treasury rates remain higher https://t.co/gQ50vS73P0
  • RBNZ's Orr: To consider settings against types of home lending, financial stability policies can help government housing objectives -BBG
  • RBNZ's Orr: Only focused on inflation, employment targets -BBG
  • RBNZ Governor Adrian Orr: Monetary policy CTTE remit targets are unchanged, MPC will explain impact of decisions on housing market. Remain committed to current stimulatory monetary settings -BBG
  • Senate parliamentarian ruled minimum-wage boost out of order -BBG
  • RBA offers to buy A$3 billion in defense of yield target -BBG #RBA $AUDUSD
  • 🇯🇵 Industrial Production YoY Prel (JAN) Actual: -5.3% Previous: -2.6% https://www.dailyfx.com/economic-calendar#2021-02-25
South African Rand Price Forecast: USD/ZAR Tests Key Fibonacci Support

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

Tammy Da Costa, Markets Writer

Rand Dollar Price Action:

Advertisement

USD/ZAR price action edged higher today, buoyed by a decrease in demand for Emerging Market currencies along with US Dollar strength. Despite the approval of an additional $1.9 Trillion US Fiscal Stimulus Package, the USD remained resilient as an increase in global Covid-19 related cases combined with rising US Treasury yields bolstered the demand for the safe-haven currency.

Given the current economic conditions, the Rand remained resilient despite South Africa recording its greatest number of deaths since the start of the Coronavirus pandemic. Despite the reimplementation of more stringent measures, the rapid spread of the second wave continues to place immense pressure on the economy as a whole.

Introduction to Forex News Trading
Introduction to Forex News Trading
Recommended by Tammy Da Costa
Introduction to Forex News Trading
Get My Guide

USD/ZAR Technical Analysis

After retreating from April highs, the formation of a Death Cross provided relief for the bears as the Rand strengthened against its US major counterpart. However, after eight consecutive weeks of gains, USD/ZAR price action came to a halt after falling to a key level of support, formed by the 61.8% retracement level of the 2018 – 2020 move, around 14.500. Now, as the battle between bulls and bears persists, price action continues to trade in a confluent zone, formed by the Fibonacci retracement levels which continue to provide 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
Get My Guide

USD/ZAR Weekly Chart

USD/ZAR Weekly Chart

Chart prepared by Tammy Da Costa, IG

Currently, the downward trend pertaining to USD/ZAR continues to hold, with the 78.6% Fibonacci retracement level of the 2020 move providing support at a level of 15.105. A break below support may result in a retest of 14.500, provided that bears are able to break below the key psychological level of 15.00. The Relative Strength Index (RSI) remains within range, with a current reading of 53, while prices have risen above the 50-Day Moving Average (MA) on the daily chart.

USD/ZAR Daily Chart

USD/ZAR Daily Chart

Chart prepared by Tammy Da Costa, IG

Week Ahead

With the reimplementation of new lockdown restrictions, this week’s inflationary data and Interest rate decision will likely be an additional driver of price action. Although consensus remains in favor of rates remaining unchanged, any surprise cuts by the South African Reserve Bank (SARB) will likely result in an increase in volatility and further whipsaw price action.

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

DailyFX Economic Calendar

--- Written by Tammy DaCosta, Market Writer for DailyFX.com

Contact and follow Tammy on Twitter: @Tams707

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

DISCLOSURES