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
USD/ZAR – How Much Further Does Dollar vs Rand Sell-off Have?

USD/ZAR – How Much Further Does Dollar vs Rand Sell-off Have?

Paul Robinson, Strategist

USD/ZAR Highlights:

  • USD/ZAR showing continuation after support break
  • Will need to firm up soon else more losses likely

USD/ZAR showing continuation after support break

USD/ZAR has been steadily sinking since breaking support back on May 21. This is in line with ZAR rallying alongside other emerging market currencies and even developed market currencies as of late. It is a full-on USD sell-off at this point that looks to have some more room.

At this time there isn’t great immediate support for USD/ZAR, as no visible levels are in the vicinity. You have to go down a good bit before finding price support via the 2018 high at 15.69 and the 200-day moving average at 15.78. If we are to see more weakness to that point then would-be shorts should get another decent look to enter.

Ideally, we see a small bounce/consolidation pattern develop to work off short-term oversold and provide a framework for managing entries and risk. Will be watching how the lower parallel (it’s not the strongest technical signpost yet) and how price behaves around it. If it starts to exhibit influence then the line will get upgraded in value.

At the immediate moment risk/reward on new trades isn’t ideal in either direction, but with a little patience that could change in the days ahead.

USD Forecast
USD Forecast
Recommended by Paul Robinson
Check out the Mid-Q1 USD Forecast
Get My Guide

USD/ZAR Daily Chart (path of least resistance lower)

USD/ZAR daily chart

USD/ZAR Chart by TradingView

Resources for Forex Traders

Whether you are a new or experienced trader, we have several resources available to help you; indicator for tracking trader sentiment, quarterly trading forecasts, analytical and educational webinars held daily, trading guides to help you improve trading performance, and one specifically for those who are new to forex.

---Written by Paul Robinson, Market Analyst

You can follow Paul on Twitter at @PaulRobinsonFX

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

DISCLOSURES