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FXWirePro: USD/ZAR stays bullish despite short-term momentum loss

• The USD/ZAR eased  on Wednesday  as markets digested Jerome Powell's comments on interest rate cuts and awaited the U.S. inflation data later in the day.

• Powell stated on Tuesday that the Fed isn't rushing to cut interest rates and would only consider a reduction if inflation slows or the job market weakens.

• Trump's trade advisers were finalizing reciprocal tariffs, escalating fears of a global trade war as the U.S. president vowed to impose duties on countries taxing U.S. imports.

• The rand, like other risk-sensitive currencies, often follows global factors like Geo politics, U.S. monetary policy when there are no significant local drivers.
 

 •At GMT 10:13, the pair was trading down 0.34 percent  at 18.427  

• Immediate resistance is located at 18.533  (Daily high), any close above will push the pair towards 18.660(50fib).

• Strong support is seen at 18.399  (61.8%fib) and break below could take the pair towards 18.322(Lower BB)

Recommendation: Good to buy  around 18.400 with stop loss of 18.250 and target price of 18.700

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