Our free forex signals service today looks at the USD/ZAR pair and we have the entry, stop and take profits levels for you.
The situation in South Africa appears to have weakened general attitudes towards the deferred currency, but the past few days have suffered little. This is partly because the local government has set up a reserve of 25,000 soldiers to ease some of the unrest we’ve seen across the country.
The South African Rand is currently slightly different from many other emerging market currencies because, while the global economy is very concerned, South Africa is, in reality, the only big country getting out of control. With that in mind, the South African scar will be the worst of all negative factors as the new market continues to shrink. However, the US Dollar has also rallied strongly on Monday, continuing the rise observed last week. Again, we have seen this has more to do with funds and currencies. So, the jump shouldn’t come as a big surprise.
We have seen the price of USD/ZAR dancing around the 14.50 level, an area that has been important several times. If we manage to turn around and break the 15.00 mark, I believe the market will accelerate, and we should continue to make significant benefit from the move over the next several weeks.
On the flip side, if we turn around and part ways with the EMA in less than 50 days, we will question the assumption of the level of 14.00, and if we part there, the pair will almost certainly slide back to a low, which is just below the key level of 13.50.
The biggest problem you are facing right now is that it is moving forward because of the latest headlines about South Africa and the unrest that has taken place there. However, I doubt that even if the violence stops, South Africa is likely to continue to suffer, as billions of scars from infrastructure damage will not be compensated or repaired shortly. So, I think it’s only a matter of time before we get over 200-day EMA and go a lot higher.
Free forex signal for USD/ZAR
Instrument: USD/ZAR
Order: BUY STOP
Entry price: 14.538
Stop Loss: 14.323
TP1: 14.859
Recommended Risk: 1%
Risk / Reward Ratio: 1:5
Signal validity period: Good until cancelled
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Saqib Iqbal
