The USD/ZAR is likely set to begin the month of October within the upper tier of long term highs and speculators will have plenty to consider.
As the last week of trading in September comes to a close for the USD/ZAR, speculators have plenty of considerations while looking forward to October. Yesterday on the 28th of September the USD/ZAR currency pair touched a high of nearly 18.22175, a ratio last seen in May of 2020 when coronavirus was hitting all global economies.
The heights reached yesterday, highlight the chaotic Forex conditions all major currency pairs have experienced the past month, the USD/ZAR has been at the forefront of the volatility. Underscoring the rather difficult circumstances traders have faced, the USD/ZAR reversed lower from the apex values yesterday and enters today’s trading near the 17.95000 vicinity with fast results still flourishing. And before a parade is planned for the downward trajectory the USD/ZAR has achieved the past day, traders may want to note on the 22nd of September the currency pair was near the 17.44000 level, which feels like a lifetime away taking into consideration the past week of trading and how violent it has been.
There is Another Higher Price Range to Consider in the USD/ZAR
Volatility is unlikely to fade away in the coming weeks; in fact speculators may want to embrace it as an opportunity. However, what is heralded as an attractive wagering possibility for traders also means it can be extremely costly if wrong decisions are made. The heightened speed of price action in the USD/ZAR means conservative leverage and risk tactics must be practiced.
- The 18.00000 level was not only touched in the past week of trading, but it was sustained and speculators need to monitor this ratio as an important psychological barometer for the USD/ZAR.
- It is unlikely that the USD/ZAR will suddenly create a new long term trend in a bearish direction, meaning a sustained downturn may be wishful thinking.
Technically and Fundamentally the USD/ZAR Remains in a Solid Bullish Trading Range
Yesterday’s downturn may be held up by some as a demonstration of things to come via their selling perceptions, but betting that the USD/ZAR is going to turn long term bearish and become an overwhelming selling opportunity is not likely. The U.S Federal Reserve remains in a hawkish interest rate mode and will likely still hike further and quite possibly into the winter of 2023. The unclear road signs ahead, which do not allow for a solid economic outlook, are likely to keep the USD/ZAR within the upper realms of its new long term price range.