USDZAR recovers today yesterday’s losses as the pair attempts to rebound from five-month lows. USD today is gaining momentum after two consecutive weeks of loses. The greenback boosted today by better fundamental data. The U.S. ISM Non-Manufacturing PMI came in at 55 above expectations of 54.5 in December.
The U.S. trade deficit declined by $3.9b in November. The services and goods deficit dropped to $43.1b in November from $46.9b in October. The United States Redbook Index (month over month) came in at -2.6% on January 3 from previous -2.8%.
USDZAR is trading 0.66% higher at 14.3031 as the pair trying to break above 14.3669 the top from the last three trading sessions. On the technical side despite today’s gains the bears are still in control of the pair.
First resistance for the pair stands at 14.3404 the daily high. In case the pair breaks above with increased volumes the next resistance level stands at 14.5805 the 50-day moving average. Bulls will be in control above that level and a move to the next resistance at the 100-day moving average (14.7746) might be possible.
On the flip side, first support for USDZAR will be met at 14.1364 the daily low. If the pair pierce that level the next target for the bears to the downside is at 14.0803 the low from January 3rd. Next support stands at 13.9332 the low from January 2nd.