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
South African Rand Dollar Outlook: USD/ZAR Recovers from Recent Slump

South African Rand Dollar Outlook: USD/ZAR Recovers from Recent Slump

Tammy Da Costa, Analyst

USD/ZAR Latest:

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

US mid-term elections are currently underway as voters of the United States head to the polls. As elevated inflation and ballooned balanced sheets remain a key concern for the Federal Reserve, EM (emerging market) currencies are at the mercy of US Dollar Strength.

After rising to a high of 18.579 in October, a rejection of rising channel resistance drove USD/ZAR into a tight range. With the zone between 17.80 and 18.00 providing support throughout last month, the 18.500 psychological level has proven to be a major hurdle for bulls.

USD/ZAR Weekly Chart

Chart, histogram  Description automatically generated

Chart prepared by Tammy Da Costa using TradingView

Forex for Beginners
Forex for Beginners
Recommended by Tammy Da Costa
Forex for Beginners
Get My Guide

Over the past four weeks, the 18.50 – 18.58 range has restricted the upside move, creating a firm barrier of resistance for USD/ZAR. While the above-mentioned support and resistance levels have remained an additional catalyst for price action, a weaker greenback, and a break of 17.80 drove the pair to a level last tested on October 5th at around 17.687.

USD/ZAR Daily Chart

Chart  Description automatically generated

Chart prepared by Tammy Da Costa using TradingView

With Fibonacci levels of the 2020 – 2021 move still intact, a hold above the 78.6% Fib at 18.0611 and above 18.30 may allow for bullish continuation back towards 18.50. For the downside to gain traction, a break below 17.56 is necessary.

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, 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