Skip to content
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
South African Rand Dollar Forecast: USD/ZAR Humbles Bears, Treasury Yields Climb

South African Rand Dollar Forecast: USD/ZAR Humbles Bears, Treasury Yields Climb

Tammy Da Costa, Analyst

USD/ZAR Forecast:

  • USD/ZAR edges higher following rising treasury yields
  • Psychological level of 15.00 appears to be probable
  • USD gains as risk sentiment favors safe-haven currencies
Advertisement

Over the past few weeks, the Rand has been surprisingly strong against major currencies, helped along by a return of US Dollar weakness. Although first world countries have already begun the inoculation process against Covid-19, the discovery of a new variant 501y.v2 deemed the Astrazenaca vaccine to be relatively ineffective, resulting in a lag in the projected rollout program in South Africa.

With the Emerging Market (EM) struggling with Fiscal constraints, increasing US treasury yields boosting the demand for the safe-haven currency, next week’s budget speech will likely have a heavy focus from investors, possibly setting the tables for further rating downgrades in March.

USD/ZAR Price Levels

With rising US Treasury Yields weighing on the volatile ZAR, the downward trajectory that has prevailed in USD/ZAR for the past few months has paused after yesterday’s fresh yearly lows. Price action is currently bouncing off of the confluent Fibonacci retracement levels around the 14.50 spot rate.

Building Confidence in Trading
Building Confidence in Trading
Recommended by Tammy Da Costa
Discover the importance of confidence in trading
Get My Guide

USD/ZAR Daily Chart

Chart prepared by Tammy Da Costa, IG

With the FOMC meeting on the horizon, 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. The psychological level of 15.00 continues to hinder further advances, forming a wall of resistance that bulls are eager to breach.

--- 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