USD/ZAR ANALYSISSouth African GDP surpasses estimatesSubdued bond yieldsUSD/ZAR stays inside rectangle sampleQuick-term draw back
USD/ZAR ANALYSIS
- South African GDP surpasses estimates
- Subdued bond yields
- USD/ZAR stays inside rectangle sample
- Quick-term draw back prone to lengthen
RAND FUNDAMENTAL BACKDROP
SOUTH AFRICAN This autumn: 2020 GDP BEATS ESTIMATES
Supply: Stats SA
Supply: DailyFX financial calendar
SA GDP figures improved on estimates each YoY and QoQ as seen within the photographs above with the biggest contributors to optimistic progress coming from transport, commerce and manufacturing respectively.
U.S. treasury yields (see chart under) which have plagued the Rand of latest, has eased this morning leading to a slight pullback on the USD/ZAR pair. Whereas expectations are that U.S. treasury yields have extra room to climb, the short-term outlook could also be that markets will want a while to digest the latest upsurge. This may very well be engaging to Rand bulls which might result in short-term ZAR power, whereas two main South African commodity exports – Spot Gold and Platinum have additionally made a comeback as we speak supporting the native foreign money.
USD/ZAR VS U.S. 10Y T-NOTE YIELD
Chart ready by Warren Venketas, Refinitiv
ECONOMIC ANNOUNCEMENTS
Tomorrow U.S. inflation information is scheduled which is able to possible lead to short-term volatility round USD crosses. Ought to precise information deviate significantly from forecasts, there may very well be vital worth fluctuations on USD/ZAR.
Supply: DailyFX financial calendar
Advisable by Warren Venketas
Buying and selling Foreign exchange Information: The Technique
TECHNICAL ANALYSIS
USD/ZAR WEEKLY CHART
Chart ready by Warren Venketas, IG
The weekly rectangle consolidation sample (yellow) that I’ve talked about beforehand has now reached topside resistance. Value motion did push above this zone however quickly fell again inside the rectangle which doesn’t represent an upside breakout.
This being stated, the long-term trendline resistance (dashed black line) has been quickly damaged however affirmation will solely be established as soon as the candle closes on the finish of the week.
Uncover the essential constructing blocks of Fibonacci and the way it may be utilized in Monetary markets!
USD/ZAR DAILY CHART
Chart ready by Warren Venketas, IG
Publish GDP announcement, the Rand did respect marginally in opposition to the U.S. Greenback. With no different vital information all through the day markets might additional digest the optimistic information in a delayed method which can lead to extra Rand power later within the day.
The Relative Energy Index (RSI) is exhibiting slowing upside momentum because it approaches overbought territory (blue). That is in line with the weekly chart however permits for clearer short-term key ranges. The January swing excessive at 15.6648 will now function preliminary resistance.
From the extra possible bearish perspective, ought to worth motion maintain under the 15.3801resistance stagethe 15.0000 psychological help zone may very well be in focus as soon as extra.
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Mar 16
( 17:03 GMT )
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Buying and selling Value Motion
USD/ZAR: KEY TECHNICAL POINTS TO CONSIDER
- Weekly: Rectangle sample
- Day by day: January 11 swing excessive – 15.6648
- 15.3801 resistance
- 15.0000 help
- Value buying and selling above trendline resistance on weekly
- RSI bullish momentum slowing
— Written by Warren Venketas for DailyFX.com
Contact and comply with Warren on Twitter: @WVenketas
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