USDZAR Rebounds from Five-Month Lows On Risk Aversion
USDZAR rebounds today from five-month lows amid general risk aversion. Increased tensions an fears of a military conflict between Iran and USA after General Qasem Soleimani killed earlier at Baghdad airport in an airstrike ordered by US President Trump. There are some reports that the US embassy in Iran urges citizens to leave the country.
Emerging market currencies boosted in December from phase one deal between the U.S. and China and increased risk appetite.
USDZAR started sharply higher after yesterday the pair hit five-month lows at 13.9305. Boosted by increased geopolitical tensions in the Middle East, USD is outperforming across the board. As of writing the pair is adding 1.88% at 14.3471 close to daily high.
The technical outlook remains negative but the move toddday gives the bulls the upper hand for the short term. Intraday resistance for the pair stands at 14.3702 the daily top. A break above with increased volumes might test the next resistance level at 14.5799 the 200-day moving average. Bulls will take control above that level and the recent negative momentum would be cancelled.
On the downside, immediate barrier for the pair stands at 14.0820 the daily low. Next support area stands at 13.9305 the low yesterday’s trading session. Next target for the sellers to the downside stands at 13.8245 the low from February and July 2019.