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. See our updated Privacy Policy here.

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
More View more
Real Time News
  • Gold prices gain as potential systemic risks out of China's Evergrande Group roil broader markets. Meanwhile, iron ore is ticking higher after a big drop on Monday as China steps up steelmaking curbs. Get your market update from @FxWestwater here:https://t.co/l4kAWDJ2wm https://t.co/b9m5ADIqqb
  • Gold remains higher despite positive Evergrande news out of China. Meanwhile, copper bulls are pushing prices upward as the potential for a housing crisis in China ebbs. Get your market update from @FxWestwater here:https://t.co/TK3MNntBdA https://t.co/14UKjR4w6M
  • GBP/USD has flattened overnight after its strongest rally in a month on Thursday. The British currency has been under pressure recently as an energy crisis has caused a number of gas providers to go bankrupt. Get your market update from @HathornSabin here:https://t.co/3D8s2eIVWv https://t.co/JDGNwKYyOn
  • Japanese candlesticks are a popular charting technique used by many traders, and the shooting star candle is no exception. Learn about the shooting star candlestick and how to trade it here: https://t.co/mfwJ0sIauS https://t.co/JIT5it2HAt
  • Gold could suffer further near-term losses due to rising U.S. Treasury yields and a weak technical picture for price action. Get your weekly gold forecast from @DColmanFX here: https://t.co/g9QvH3L4It https://t.co/Vz98E0Bl9U
  • Gold has been trending lower after failing to clear resistance in the $1835 area earlier this month. Get your $XAUUSD market update from @DColmanFX here:https://t.co/3hm1g3BHgf https://t.co/MdTQKEBCBx
  • Key break here in the 10-year #Treasury yield as it rises to the highest since late June Took out 1.4230 resistance, and the 100-day SMA Eyes now on the 38.2% Fib extension at 1.4775 Also potential falling resistance from March https://t.co/4cI6l210ui
  • The move in rates after this week’s FOMC has continued and the 10 year yield has pushed up to a fresh two-month-high. Get your market update from @JStanleyFX here:https://t.co/CRWhuZ3sxD https://t.co/svHHqN2Zz8
  • S&P 500 contending with its proverbial ‘line in the sand’ as bulls and bears battle for directional control. How we close/trade around the 50-day moving average could serve as a noteworthy bellwether for risk trends headed into next week. I remain cautious below ~4,480. $SPX $ES https://t.co/qogkjs1Sx2
  • USD/JPY trades to a fresh monthly (110.57) amid the pickup in longer-dated US Treasury yields, and the exchange rate may stage a larger advance over the coming days. Get your market update from @DavidJSong here:https://t.co/dlNXOrJnM9 https://t.co/LCQd26W1zF
South African Rand Dollar Forecast: USD/ZAR Eyes January Lows

South African Rand Dollar Forecast: USD/ZAR Eyes January Lows

Tammy Da Costa, Analyst

Rand Dollar Outlook:

Advertisement

In anticipation of the annual South African budget speech, scheduled for 24 February 2021 , the State of the Nation Address (SONA) delivered by President Cyril Ramaphosa last night, set the tone for the economic recovery as investors listened with intent for any signs of potential changes to monetary policy that may be announced as the Emerging Market (EM) continues to face further challenges resulting from the Coronavirus pandemic.

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

With the discovery of the dominant South African variant of the virus, the vaccine rollout program remains at the forefront of the economic recovery as other challenges such as corruption, large government debt and the inability of power utility Eskom to keep the lights on, remain a hindrance for business activity and the economic recovery as a whole.

USD/ZAR Price Levels

Despite a rather dim economic outlook, the ZAR has managed to maintain its position below the key psychological level of 15.00, catalyzing off of US Dollar weakness and an increase in risk-on sentiment. For now, price action remains within the zone of confluency between the 50% Fibonacci retracement level of the 2020 move around 14.5 and the declining trendline, which continue to provide support and resistance for the pair.

USD/ZAR Daily Chart

South African Rand Dollar Forecast: USD/ZAR Eyes January Lows

Chart prepared by Tammy Da Costa, IG

For now, support continues to hold at 14.50 with the next level of support forming at the psychological level of 14.00, last seen in January 2020. However, if buying pressure is strong enough to surpass current resistance of 15.00, then bulls may drive price action toward the next level of resistance at 15.50

USD/ZAR Economic Events

Following the decision to suspend the Astrazeneca vaccine after it proved relatively ineffective against the South African variant, the arrival of the 9 million doses of Johnson & Johnson’s vaccine may further support the Rand as the larger US Fiscal Stimulus package continues to get factored into the market, weighing on the greenback.

Meanwhile, next week’s fundamentals may further drive price action in either direction, focusing on Wednesday’s economic events.

South African Rand Dollar Forecast: USD/ZAR Eyes January Lows

DailyFX Economic Calendar

--- Written by Tammy Da Costa, 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