USDZAR Holds 15.00 but the Bounce Lacks Strength

Summary:

USDZAR was lower on the day as the pair struggles to see follow-through above the 15.00 support level and a two-day rally in the US Dollar has failed.

USDZAR was lower on the day by 0.8% as the pair struggles to see follow-through above the 15.00 support level. A two-day rally saw the US Dollar trading near 15.20 but the bears are back in control as the week gets underway.

The week ahead is light on economic data with retail sales for the United States coming later in the week so the pair is likely to follow recent trends. The return of US stimulus talks has hurt the US dollar and, although these have stalled again, another rescue package for the country is likely not far away and the greenback is still struggling to find supporters.

Last week saw the South African Rand boosted by the latest GDP figures which were less bad than expected. The economy grew 66.1% for the quarter compared to the 52.6% expected as the country bounce back from the damage seen from strict virus lockdowns.

USDZAR Technical Outlook

USDZAR is giving up Friday’s gains as the price tumbles back to the 15.00 level. The price action there will determine whether we see a bottom or new lows. Shorts could place a stop above today’s high if the close is bearish. The Investing Cube team is currently available to help all levels of traders with the Forex Trading Course or one-to-one coaching.