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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 usd/zar

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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