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FxWirePro: USD/ZAR uptrend loses steam, remains on bullish path

• USD/ZAR edged lower on Monday  as a pause in hostilities between ‌the United States and Iran triggered a sharp decline in oil prices and improved market sentiment.

• Rand lost ⁠about 2% last week and came close to breaching 17 ​per dollar for the first time since April.

•The decline ​was driven largely by the South African Reserve Bank's decision to leave its benchmark lending rate unchanged, contrary to market expectations ​of an increase of 25 basis points.

• Oil prices plunged over 6% on Monday as the U.S. and Iran paused attacks, boosting hopes of a diplomatic breakthrough and the reopening of the Strait of Hormuz.

• Immediate resistance is located at 16.880(Higher BB) any close above will push the pair towards 16.912(38.2%fib).

• Strong support is seen at 16.675(50%fib) and break below could take the pair towards 16.555(May 18th low).

Recommendation: Good to buy around 16.670 with stop loss of 16.550 and target price of 16.900

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