USD/ZAR: New Trading Opportunities at FXOpen
FXOpen traders can now incorporate the USD/ZAR currency pair into their strategies. If you want to diversify your portfolio and deal with market volatility, open an account now and enjoy USD/ZAR trading.
As shown by the USD/ZAR chart, on 19th September the price fell below the 17.400 level for the first time since February 2023.
It is likely that this was more due to the weakness of the US dollar ahead of the Federal Reserve's decision on interest rate cuts than to the strength of the South African rand.
However, after the decision was published, the ensuing surge in volatility led the price to hit a multi-month low, and today the USD/ZAR chart offers bulls increasing hope for a rebound.
The technical analysis of the USD/ZAR chart indicates that in 2024, the price movement has been forming a downtrend, represented by the red descending price channel. Bears have managed to push the price below the psychological level of 18 rand per US dollar, and since the end of August, this level has acted as resistance.
During the current week, the price dropped (first arrow) below the 17.57 level, which had previously acted as support. The subsequent recovery (second arrow) from the lower boundary of the channel could prove to be an important signal:
if the price consolidates above 17.57, this may indicate a bear trap, signalling a bullish reversal;
if the price shows that the 17.57 level acts as resistance, it may be interpreted as bears maintaining control of the market.
In any case, the addition of the volatile USD/ZAR currency pair to the list of available instruments on FXOpen opens up new opportunities for Forex traders.
For information. According to data for 2024:
- The average daily price fluctuation for USD/ZAR is 1.22%;
- The most volatile days are Tuesday, Wednesday, and Thursday;
- The least volatile day is Monday.
Read more: https://fxopen.com/blog/en/oa-analysis-of-usd-zar-price-recovers-from-multi-month-low/
Text source: Forex Trading Blog
