The USD/ZAR pair is trading in the green at 14.970 level at the moment of writing but the current rebound could be only a temporary one if the DXY resumes its downwards movement. The pair dropped below the immediate uptrend line, so a deeper drop is in cards. Still, we’ll have to wait for confirmation before taking action.
The price has managed to come back higher despite DXY’s sell-off. On Friday, the ISM Manufacturing PMI, Core PCE Price Index, Personal Spending, ISM Manufacturing Prices, and the Revised UoM Consumer Sentiment came in better than expected.
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US Factory Orders 1.2% Growth
The Dollar Index is trading in the red even if the US Factory Orders registered a 1.2% in August versus a 1.1% growth expected and compared to 0.7% growth in July. The USD/ZAR could be moved by the high-impact US data during the week. Tomorrow, the ISM Services PMI is expected to drop from 61.7 to 59.9 points.
From the technical perspective, its breakdown through the uptrend line signalled a corrective phase. Now it has turned back higher to test and retest the 23.6% retracement level, the weekly pivot point, and the uptrend line. Personally, I believe that a new lower low may activate a deeper drop.
Free forex signals – Sell USD.ZAR at 14.849
Free forex signals entry price and take profit
Instrument: USD/ZAR
Order Type: SELL STOP
Entry price: 14.849
Stop Loss: 15.138
TP1: 14.467
My Risk: 1%
Risk / Reward Ratio: 1:1.32
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