EUR/ZAR: A New Currency Pair for Trading on FXOpen
Traders using FXOpen can now incorporate the EUR/ZAR currency pair into their strategies.
The EUR/ZAR pair is known for its volatility, making it suitable for trend trading within a single day. On the other hand, as the daily chart (below) shows, the exchange rate remains within a range, which supports swing trading around key support and resistance levels.
What Influences the EUR/ZAR Exchange Rate?
Key factors affecting the value of the South African rand (ZAR) in 2024 include:
High Inflation: In January, inflation was 5.4%, but by July it had decreased to 4.6% due to high interest rates set by the South African Reserve Bank, which strengthen the rand.
Prices of Exported Commodities: Gold, platinum, and diamonds.
Political Instability: Domestic political events and reforms can trigger spikes in volatility.
Technical Analysis of EUR/ZAR
Analysis of the EUR/ZAR chart for 2024 reveals that:
The price is moving in a weak downtrend, as indicated by the grey linear regression channel.
At the end of 2023, the price was supported by a trendline (in red), but after a bearish breakout in March 2024, the breakout zone (around 20.4) started to show signs of resistance.
Conversely, the level of 19.4 appears as significant support. It is possible that the price may test this level for resilience later this year. Currently, bearish pressure is held at the support level of 19.57.
EUR/ZAR Forecasts
Using global macroeconomic forecasting models, Trading Economics analysts predict that the EUR/ZAR rate could be 19.9468 in one year.
Read more: https://fxopen.com/blog/en/oa-eur-zar-a-new-currency-pair-for-trading-on-fxopen/
Text source: Forex Trading Blog
