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
Oil - US Crude
Bullish
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
Bullish
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
USD/ZAR Tests 15.00, Russian De-escalations Spurs ‘Risk-On’ Sentiment

USD/ZAR Tests 15.00, Russian De-escalations Spurs ‘Risk-On’ Sentiment

Warren Venketas, Analyst

RAND ANALYSIS

  • Russia withdraws troops from border.
  • SA related commodities weigh on rand.
Advertisement

ZAR FUNDAMENTAL BACKDROP

The rand has been at the mercy of US data (dollar) and geopolitical risk of recent as sentiment fluctuates almost daily between ‘risk on’ and ‘risk off’ modes. Today was no different after Russian troops were announced to be retreating from the Ukrainian border giving added impetus to higher yielding emerging market (EM) currencies like the rand.

Gains have been limited by falling rand-linked commodities particularly iron ore which has come under pressure today on the back of Chinese authorities comments around price scrutiny. Spot gold and platinum has followed suit capping rand gains.

ECONOMIC CALENDAR

With today’s economic calendar relatively light, South African inflation data and FOMC minutes are in focus for tomorrow (see calendar below).

SA CPI is expected to come in lower which could bring in dovish force ahead of the next SARB rate announcement while investors are looking to the FOMC minutes for some guidance especially after recent ultra-hawkish comments from the Fed’s Bullard.

USD/ZAR Tests 15.00, Russian De-escalations Spurs ‘Risk-On’ Sentiment

Source: DailyFX economic calendar

TECHNICAL ANALYSIS

USD/ZAR DAILY CHART

USD/ZAR Tests 15.00, Russian De-escalations Spurs ‘Risk-On’ Sentiment

Chart prepared by Warren Venketas, IG

Todays daily USD/ZAR candle already reflects the large price action swings echoing today’s geopolitical events. After a swift push down towards the psychological 15.0000 support zone, markets have pushed higher leaving behind a lower long wick which could suggest subsequent upside should the daily close reflect the current candle.

Bullish divergence still holds as shown via the Relative Strength Index (RSI) readings (green) which contrasts the lower relative price action on the daily chart.

Resistance levels:

  • 15.4289
  • Channel support

Support levels:

  • 15.0000
  • 14.8633

Contact and follow Warren on Twitter: @WVenketas

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

DISCLOSURES