Buy Stop: Above 15,81
Stop Loss: Below 14,61
USD/ZAR Chart Analysis
USD/ZAR Technical Analysis
On the daily timeframe, USDZAR: D1 has broken up the resistance line. A number of technical analysis indicators have formed signals for further growth. We do not rule out a bullish movement if USDZAR: D1 rises above its latest high: 15.81. This level can be used as an entry point. The initial risk limitation is possible below the Parabolic signal, the lower Bollinger band, 200-day moving average line and 2 lower fractals: 14.61. After opening a pending order, move the stop following the Bollinger and Parabolic signals to the next fractal low. Thus, we change the potential profit/loss ratio in our favor. The most cautious traders, after making a deal, can go to the four-hour chart and set a stop-loss, moving it in the direction of movement. If the price overcomes the stop level (14.61) without activating the order (15.81), it is recommended to delete the order: the market is undergoing internal changes that were not taken into account.
Fundamental Analysis of Forex – USD/ZAR
South African Reserve Bank (SARB) raised its rate by 0.25%. Will the USDZAR quotes continue to grow?
SARB increased the rate to 3.75% from 3.5%. However, investors may have decided that this is not enough against the background of relatively high inflation in South Africa. In October 2021, it was 5% in annual terms. Note that the same inflation rate of about 5% was observed in South Africa from April 2017 until the start of the coronavirus epidemic in 2020. At the same time, the SARB rate was significantly higher than the current level and was in the range of 5.25-6.75%. Another negative factor for the South African rand may be the outlined correction in world prices for precious metals due to the growth of the US dollar index.