USD / ZAR call points:
The South African beach has withstood its strength in major currencies like US dollar struggles with recovery. Together risk assessment currently supports Emerging Markets (EM) currenciesrising commodity prices have further helped catalyze price effects, allowing the volatile Rand to maintain its bullish narrative, at least for now.
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USD / ZAR price setting
USD/ ZAR price operations are currently within a well-defined range between the key level of the 2021 Fibonacci movement. After down critical support that continues basic psychological level at 2 p.m. USD/ ZAR bulls made a concerted effort to raise prices, but the weakness of the dollar has hampered their ability to regain control of an outstanding systemic trend.
Following the rebound, prices have temporarily stopped at a retracement of 14.4% at 14.19, with a further resistance level of 23.6% at a retracement of 14.35. Although the formation of a Doji candle suggests indecision, it is Converging Mean Approach / Deviation (MACD) is below the baseline, but a potential intersection seems threatening.
USD / ZAR Daily Chart
The chart was compiled by Tammy Da Costa, IG
USD / ZAR basics
As global inflation challenges intensify, this week will be itss economic calendar could potentially jeopardize Rand if the South African Reserve Bank (SARB) or the Fed brings unexpected surprises.
DailyFX Economic calendar
Although both SARB and FOMC expected to repeat their dovish position, south africa still has a long way to go to achieve sustainable growth. As the introduction of national vaccines lags behind many developing countries, the likelihood of a third route and increasing government debt are additional challenges that need to be addressed in order for the Beach to be able to maintain its current trajectory throughout the winter.
– Written by DailyFX.com market writer Tammy Da Costa
Connect and follow Tammy on Twitter: @ Tams707