- Moves in the USD index have remained muted so far on Labor Day Monday, with the main focus on renewed yen strength in G10. However, USDZAR has extended the bounce off Friday’s one-year low, and was up as much as ~0.7% earlier in the session. Slightly softer equities and moderate weakness across the commodities complex are both likely accounting for ZAR underperformance today, with the local currency lagging its EMEA peers.
- But despite today’s bounce, trend conditions for the pair remain bearish. The break lower last week confirms a resumption of the downtrend and maintains the price sequence of lower lows and lower highs. This paves the way for an extension towards 17.5713, the Jul 28 ‘23 low, and 17.4193, the Jul 27 ‘23 low and the next key support. Initial resistance is seen at 17.9619, the 20-day EMA.
ZAR: USD/ZAR Extends Bounce Off Friday’s One-Year Low
Last updated at:Sep-02 08:37By: Hiren Ravji
South Africa
- Moves in the USD index have remained muted so far on Labor Day Monday, with the main focus on renewed yen strength in G10. However, USDZAR has extended the bounce off Friday’s one-year low, and was up as much as ~0.7% earlier in the session. Slightly softer equities and moderate weakness across the commodities complex are both likely accounting for ZAR underperformance today, with the local currency lagging its EMEA peers.
- But despite today’s bounce, trend conditions for the pair remain bearish. The break lower last week confirms a resumption of the downtrend and maintains the price sequence of lower lows and lower highs. This paves the way for an extension towards 17.5713, the Jul 28 ‘23 low, and 17.4193, the Jul 27 ‘23 low and the next key support. Initial resistance is seen at 17.9619, the 20-day EMA.
