South Africa update: USD/ZAR Soars Towards 15.00, SA unrest weighs on the Rand
- Riots continue throughout South Africa, Rand slumps as investors seek refuge in the Dollar
- USD/ZAR breaks above trendline resistance
- US Inflation data may further assist in catalyzation of price action for USD/ZAR
SA Riots and Looting Persist, Economy Stands to a Halt
South Africa remains on high alert as masses of looters and protestors continue to destroy shopping malls, factories, businesses and private property, in ‘protest’ of the arrest of former SA President, Jacob Zuma who is currently facing a 15 month prison sentence on charges of contempt.
With damages already expected to exceed Billions of Rands, the military are now faced with the tough task of restoring peace to the already struggling economy.
As political tensions continue to rise and economic output remains well-below average, the release of US Inflation data later today may further assist in the catalyzation USD/ZAR price action as investors continue to look for signs of Fed tapering.
DailyFX Economic Calendar
USD/ZAR Price Setup
After breaking above critical trendline resistance. Prices are now rising towards the next level of resistance of 14.82, formed by 23.6% retracement level of the 2020 – 2021 move.
If prices are able to break above 14.82 and the key psychological resistance of 15.00, USD/ZAR may be poised for further upside and a probable change in the direction of the systemic, prominent trend.
USD/ZAR Daily Chart
Chart prepared by Tammy Da Costa, IG
--- Written by Tammy Da Costa on behalf of 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.