USDZAR was lower by 0.60% on Tuesday as the greenback struggled across the board. The USD saw a lower than expected consumer confidence update but a possible easier transition path for the U.S. Presidency has risk assets bid.
President Trump has instructed the Federal Government to begin the transition process as normal, which implied an easier transition may be ahead. However, he later tweeted that he would present wrongdoing in “great detail” in a “big lawsuit” so there may still be confusion in the next two-three weeks.
The consumer confidence number came in at 96.1 compared to expectations of 98 and this is lower than last month’s 101.7 reading. The slump in confidence is to be expected with the business and virus outlook and traders are giving these numbers less weight than they would in stable economic situations.
USDZAR Technical Outlook
USDZAR is trading in a tight range after the 15.50 level capped the bounce. The pair is finding support below here so it needs a catalyst before a real trend can develop. Traders should look for a close above 15.50 or near 15.20 before taking a position. The Investing Cube team is currently available to help all levels of traders with the Forex Trading Course or one-to-one coaching.
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USDZAR Daily Chart
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