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USD/ZAR: Move Lower Now Situated near Crucial Support Level – 07 November 2022


The USD/ZAR has mirrored other major currency pairs as a bearish move lower is challenging important support and speculators wonder about direction.

The USD/ZAR is trading near the 17.95000 mark as of this writing with relatively quick price action. Last Thursday the USD/ZAR skyrocketed towards the 18.52100 level in reaction to a rather hawkish U.S Federal Reserve FOMC policy mantra sounding a warning of more interest rate hikes to come.


However, after challenging the higher levels of the USD/ZAR and seemingly threatening to create new highs, a reversal lower began in earnest. The bearish momentum of the USD/ZAR has danced in lock step with other major currency pairs in which the USD has suddenly demonstrated weakness.

Are Financial Houses Betting the Worst News is now in and Wagering on a New Trend?

The USD/ZAR has been within the confines of a long term bullish trend. The USD/ZAR remains fixed within the upper tiers of this long expansive move higher. The 18.00000 ratio is an important psychological barrier. On Friday the USD/ZAR moved below the realm and tested the 17.90000 vicinity for a brief amount of time before seeing some buying action going into the weekend.

It is extremely difficult to pick the exact moment a reversal of market action takes place. Being able to simply acknowledge the change in direction and starting to wager on a distinct difference of speculative sentiment is important enough. No trader should expect to know the exact turning point of market behavior which is set to create a new direction.

Having been in a long term bullish trend of strength, it does seem financial houses are starting to wager the USD may be about to lose some muscle. The USD/ZAR has now perched up against important support. The move lower in the USD/ZAR is important because it may reflect the notion that financial houses are starting to position for a weaker USD mid-term.

The Bullish USD/ZAR Trend may not be Dead Yet

Traders who decide to pursue bearish price action in the USD/ZAR should not be overly ambitious, realistic and quick hitting targets should be used on wagers looking for downside price action.If trading stays below the 18.00000 and can actually sustain levels below this ratio, this could be an important side of additional selling potentially occurring.

Choppy conditions should be expected near-term, the U.S mid-term elections are tomorrow and the results will affect market sentiment. The USD/ZAR which has been testing highs and recently moved with speed upwards last week is showing signs of sentiment changing. Pursuit of a bearish trend that is sustained is dangerous and risk management needs to be used for speculative wagers. If the 17.93000 level is proven to be vulnerable the USD/ZAR could test marks seen in early October.

USD/ZAR Short Term Outlook:

Current Resistance: 18.04600

Current Support: 17.93100

High Target: 18.11800

Low Target: 17.87100

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