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    USDZAR In an Interesting place


    USDZAR, Daily        

    Last month (May 16th) the USDZAR trade hit Target 1 (15.5380)  from our entry at 15.2322 before turning at 15.9742, less than 3 pips from Target 2 (16.0000).

    On Friday S&P Global ratings affirmed South Africa’s investment-grade credit status, that, together with the poor US Non-farm payroll jobs report helped the USDZAR to one month lows on Monday. This also coincided with a break of the 50 DMA and the key psychological 15.0000 level, from a technical perspective this has been positive for the rand and negative for the USDZAR pair.

    The next key level is the 200 DMA at 14.8540, which has held for two daysA breach and break of this long term support area could take the pair to 14.2340 (2016 low) and further down to 13.9020.  A break above 15.5000 would be required for long positions to be considered.

    Trading the exotic pairs brings some additional risks and rewards. The lower liquidity and higher spreads means that trades should be carefully constructed and evaluated before executing. As we always emphasize your trading capital is your most important asset and you should always trade with strict risk management rules.  “Trade what you see not what you think”, apply your rules consistently and you can be successful regardless of the asset or time frame you choose to trade.



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    Stuart Cowell

    Market Analyst 


    Disclaimer: This material is provided as a general marketing communication for information purposes only and does not constitute an independent investment research. Nothing in this communication contains, or should be considered as containing, an investment advice or an investment recommendation or a solicitation for the purpose of buying or selling of any financial instrument. All information provided is gathered from reputable sources and any information containing an indication of past performance is not a guarantee or reliable indicator of future performance. Users acknowledge that any investment in FX and CFDs products is characterized by a certain degree of uncertainty and that any investment of this nature involves a high level of risk for which the users are solely responsible and liable. We assume no liability for any loss arising from any investment made based on the information provided in this communication. This communication must not be reproduced or further distributed without our prior written permission.

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