Free Trial

USD/ZAR Sights Remain on Key Resistance

ZAR
  • Despite the perceived fade in Middle East tensions and overall subdued global FX price action, the rand is slightly underperforming compared to most of its EMEA peers on the day, likely owing to the ~2% pullback in gold, as ZAR remains high beta to swings in global sentiment.
  • Spot gold is now below Wednesday’s lows to eye next intraday support of 2324.3. Nevertheless, USDZAR still sits around 1.5% lower compared to Friday’s high despite today’s moderate uptick. Initial short-term support at 18.8729, the 50-day EMA, lies some way off.
  • From a technical standpoint, the reversal higher on Apr 10 and subsequent recovery in USDZAR signals a stronger bullish theme. Sights are on key resistance at 19.3899, the Feb 23 high, which was tested last week. A break of this level would open 19.6399, the Oct 6 2023 high. Key support has been defined at 18.4131, the Apr 9 low. Clearance of this level would instead reinstate the recent bearish theme.
159 words

To read the full story

Close

Why MNI

MNI is the leading provider

of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.

Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
  • Despite the perceived fade in Middle East tensions and overall subdued global FX price action, the rand is slightly underperforming compared to most of its EMEA peers on the day, likely owing to the ~2% pullback in gold, as ZAR remains high beta to swings in global sentiment.
  • Spot gold is now below Wednesday’s lows to eye next intraday support of 2324.3. Nevertheless, USDZAR still sits around 1.5% lower compared to Friday’s high despite today’s moderate uptick. Initial short-term support at 18.8729, the 50-day EMA, lies some way off.
  • From a technical standpoint, the reversal higher on Apr 10 and subsequent recovery in USDZAR signals a stronger bullish theme. Sights are on key resistance at 19.3899, the Feb 23 high, which was tested last week. A break of this level would open 19.6399, the Oct 6 2023 high. Key support has been defined at 18.4131, the Apr 9 low. Clearance of this level would instead reinstate the recent bearish theme.