USD/ZAR Rallied Near 2 Week High At 13.08
HotForex | Mar 28, 2017 09:16AM ET
USD/ZAR Daily
Global stock markets started to stabilize yesterday and Asian markets bounced back with materials and financial companies leading the way. The dollar and Wall Street regained some composure after the storm caused by the Trump administration to achieve promised health care reforms, with investors seeing positives in Trump’s healthcare bill failure and speculate that he might also not be able to pass measures that are restrictive to global trade.
As I wrote yesterday,
Still, it is interesting to see that even though Brexit comes into view this week that the drama over the ACA was ended on Friday, the fact that the healthcare bill was canceled appears to be the major driver of today’s rally.
However, that was not the case with USD/ZAR pair, which has rallied above 13.00 driven mostly by politics in South Africa. Despite yesterday’s US dollar weakness, pair manage yesterday to be lifted to a one-week high of 12.83, which was 50 pips away from yesterday’s low, breaking the 50-day MA at 12.64.
This morning it became public through Bloomberg News that President Jacob Zuma is planning to fire his Finance Minister Pravin Gordhan, with USD/ZAR stormed higher to two-week high of 13.09 in the wake of such a scenario. The 4-hour strengthens in the USD/ZAR prompted a long position due to the break of the significant 200 period EMA at 12.96.
Hence based on the political concerns taking place in SA since yesterday, an entry was taken at 12.97. Based on a 14 day ATR number, target was set at 13.20, which is the confluence of the 38.2 Fibonacci level. Target 2 is at 13.35, which is month’s high. Additionally, the turn of Parabolic SAR yesterday and the aggressive slope of Williams’ Percentage range moving towards oversold territory, suggests a possible upward momentum.
Get The News You Want
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.