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
Rand Dollar News: USD/ZAR Falls Below 17.00 Ahead of Fed Decision Day

Rand Dollar News: USD/ZAR Falls Below 17.00 Ahead of Fed Decision Day

Tammy Da Costa, Analyst

USD/ZAR Outlook:

USD Forecast
USD Forecast
Recommended by Tammy Da Costa
Get Your Free USD Forecast
Get My Guide

Risk Assets Ease Ahead of FOMC

US stock indices S&P 500 (SPX), Nasdaq (US Tech 100) and the Dow Jones (Wall Street 30) are trading in the green after tech giants Microsoft and Alphabet released resilient earnings, easing sentiment before the FOMC rate decision later today (18:00 GMT).

With a 75-bps rate hike already priced in, the subsequent press conference will be monitored closely as Fed Chair Jerome Powell discusses the forward guidance for the trajectory ahead.

Trading Forex News: The Strategy
Trading Forex News: The Strategy
Recommended by Tammy Da Costa
Trading Forex News: The Strategy
Get My Guide

If the Fed is wiling to do ‘whatever it takes’ to combat inflation, an economic slowdown combined with higher interest rates (cost of credit) and elevated price pressures raises the prospects of a recession.

DailyFX Economic Calendar

USD/ZAR Technical Analysis

While robust data and an aggressive Fed has supported USD strength against most major counterparts, USD/ZAR has temporarily fallen back below 17.000 after bulls failed to gain traction above the September 2020 high of 17.264 earlier this month (14 July).

Although fundamental factors will likely remain the prominent driver of sentiment, the weekly chart below highlights the manner in which Fibonacci levels from historical moves (both the 2018 – 2020 & 2021 – 2022) continue to provide support and resistance for price action.

Starts in:
Live now:
Oct 11
( 17:10 GMT )
Recommended by Tammy Da Costa
Trading Price Action
Register for webinar
Join now
Webinar has ended

USD/ZAR Weekly Chart

Chart prepared by Tammy Da Costa using TradingView

With the weekly CCI (commodity channel index) still hovering around overbought territory, the daily CCI has fallen back into the ‘acceptable’ range while the pair is down around 0.54% for the day. If the 2020 range remains intact, a break below 16.70 may allow for a retest of the July low at 16.234 with the next layer of support holding at the 16.00 psychological level.

The Fundamentals of Range Trading
The Fundamentals of Range Trading
Recommended by Tammy Da Costa
The Fundamentals of Range Trading
Get My Guide

USD/ZAR Daily Chart

Chart prepared by Tammy Da Costa using TradingView

However, for bullish continuation to be probable, a break above 17.00 and 17.300 would be required, opening the door for the 76.4% Fib of the 2018 – 2020 move at 17.495. If this level is cleared, the uptrend may continue, with the next level of resistance holding at 17.687 (August 2020 high).

Trade Smarter - Sign up for the DailyFX Newsletter

Receive timely and compelling market commentary from the DailyFX team

Subscribe to Newsletter

--- Written by Tammy Da Costa, CFTe

Contact and follow Tammy on Twitter: @Tams707

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

DISCLOSURES