USD/ZAR Loses Ground As SA Riots Abate; Upside Bias Remains

The USD/ZAR lost ground on Friday after days of unrest started to subside in affected provinces in South Africa. The firming of the Rand followed the deployment of 25,000 soldiers and the call-up of 12,000 reserves to quell violence and looting in Gauteng and KwaZulu Natal provinces which left more than 100 people dead. 

The violence which shook the country took off after the jailing of former President Jacob Zuma for 15 months for refusing to appear before an anti-corruption probe panel. Zuma has plenty of grassroots support and his jailing triggered violence in a country that is struggling with economic woes and Africa’s worst coronavirus pandemic situation. 

The USD/ZAR is down 1.29% as of writing but looks set to end the week higher. 

Technical Outlook for USD/ZAR

The active daily candle is challenging the support at 14.39768. If this level breaks down, 14.2837 becomes the next target in line. 14.15360 and 13.97151 form other targets to the south. 

On the flip side, a bounce on the current support opens the door towards 14.52955. 14.71708 and 14.89528 will come into the picture if the Rand resumes its weakness, allowing for a continuation of the bullish reversal that commenced on 7 June.

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USD/ZAR: Daily Chart

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