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USDZAR Trades Below 50-Day EMA

ZAR
The rand is the strongest performer in the EMEA FX space, with the softer dollar and recent uptick in the Bloomberg precious commodities index providing a tailwind to the local currency. The cross is trading below the 50-day EMA at typing – a level which intersects at 18.8161 today – and has now erased the majority of this week’s earlier gains.
  • Bears will eye additional losses toward recent lows in the 18.70 region. Further out, key short-term support has been defined at 18.3805, the Aug 24 low. Clearance of this support would be a bearish development.
  • The stronger performance of the rand comes despite the backdrop of a looming US government shutdown as well as the “higher for longer” theme which has been weighing on risk assets more broadly.

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