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
Emerging Markets Update: USD/ZAR Boosted by US Dollar Strength

Emerging Markets Update: USD/ZAR Boosted by US Dollar Strength

Tammy Da Costa, Analyst

USD/ZAR Overview:

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

Rand Dollar Forecast

USD/ZAR has continued to pursue its move higher as US Dollar strength remains the prominent driver of price action. With South African retail sales declining at a rapid pace, the economy has experienced 1345 hours (56 days) of loadshedding (rolling blackouts) since the start of the year. This has exacerbated the slowdown in growth adding pressure to the labor market and to the future trajectory of the developing nation.

Visit DailyFX Education to Learn About the Impact of Politics on Global Markets

As the pair aims to achieve its third consecutive month of gains, the 17.00 psychological handle remains as critical resistance. With the uptrend pushing prices higher, a MACD (moving average convergence/divergence) crossover above the zero line suggests that the bullish move may be able to gain traction.

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 Monthly Chart

Chart prepared by Tammy Da Costa using TradingView

On the daily chart, the MACD is hovering around the zero-line which could be indicative of a big zone of both support and resistance with the psych 17.00 level and Fibonacci levels highlighting additional levels of prominence.

USD/ZAR Daily Chart

Chart prepared by Tammy Da Costa using TradingView

At the time of writing, a hold above 17.00 could see a retest of the July high at 17.27 with a move higher bringing 17.672 (the 78.6% retracement of the 2018 – 2020 move) back into play.

Traits of Successful Traders
Traits of Successful Traders
Recommended by Tammy Da Costa
Traits of Successful Traders
Get My Guide

However, if bears manage to drive price action lower, the 50-day MA could provide a layer of support at 16.50 and towards 16.00.

--- Written by Tammy Da Costa, Analyst 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