The USD/ZAR fluctuated during the last session. It rallied in the previous week along with other major currency pairs. However, brief tests of support and resistance levels weren’t enough for the USD/ZAR to make a breakthrough. As a result, the South African rand wavered back and fro early this week.
Despite that, the USD/ZAR had lower resistance levels incrementally from a technical perspective over the past couple of days. Support levels have not decreased significantly. Nonetheless, they have continued to be tested. However, so far, higher resistance levels have not been major targets within the USD/ZAR’s Forex results. Such action indicates that the pair may have continued to decline near term.
Currently, the USD/ZAR is hovering near the 15.00000 ratios. However, the pair has traded mostly below 15.0000 since the middle of December.
It has surpassed that point several times in the past. The USD/ZAR remained mainly above 15.00000 in January, for instance. But resistance levels have been fairly durable, near 15.20000. So, the analysts believe that the pair will tumble down soon.
The USD/ZAR underscores the forex market as a barometer of risk appetite, so its movements are very important for traders.
How are the U.S. dollar and other major currencies faring?
The U.S. dollar skyrocketed to a seven-month high against the Japanese yen on Thursday. An orderly increase in U.S. Treasury yields supported the currency.
Traders are awaiting Federal Reserve Chairman Jerome Powell’s speech, which may determine the global bond and Forex markets trend.
The greenback also jumped to a 5-month high against the Swiss franc and rallied against most currencies. However, it tumbled down against the Australian and New Zealand counterparts.
Investors are expecting stronger global growth to continue. With the strengthening risk appetite, demand for commodity currencies increased as well.
According to analysts, the U.S. currency may extend gains against the yen if Treasury yields continue rising at a measured pace. However, the dollar will probably decline more against currencies of major commodities exporters.
On Wednesday, the greenback soared to 107.28 yen, hitting the highest point since July last year. The U.S. currency exchanged hands at 0.92090 Swiss franc earlier in London, reaching its highest point against the safe-haven currency since October 2.
Meanwhile, the Sterling was steady at $1.3942, and the euro traded at $1.2043, tumbling down by 0.15% on the day.
The Australian dollar managed to rebound from early losses and soared to $0.7802, gaining 0.35% on the day. The New Zealand dollar also climbed up by 0.3% to $0.7268.