USDZAR jumps higher at 14.4425 after the South Africa central bank cut interest rates to 6.25% from 6.5%. Most of the analysts expected that SARB would keep interest rates unchanged. SARB in a statement lowered the 2019 GDP forecast to 0.4% from 0.5%. Above that SARB also lowered the GDP forecast for 2020 to 1.2% from 1.4% and to 1.6% from 1.9% for 2021.
The USD to rand after the initial spike to daily highs retreated back to the unchanged level. While after the release of upbeat U.S. retail sales data the pair managed to regain the positive momentum.
Read our Best Trading Ideas for 2020.
USDZAR Technical Analysis
USDZAR keeps the rebound alive from January 2nd lows at 13.93 while today the pair adds 0.18% at 14.4101. The technical outlook for USDZAR is negative and only a move above the 14.5106 might cancel the bearish momentum.
On the upside, initial resistance for the USDZAR pair stands at 14.4425 the daily top. The 50-day daily moving average at 14.5111 is the critical resistance level, a break above might be the start of another leg higher. Bulls will be in the drivers seat above that level, and the next target would be at 14.5843 the 200-day moving average.
On the downside, immediate support for the USDZAR pair will be met at 14.3510 the daily low. If USDZAR pair breaks below that level the next target for the bears is at 14.2890 the low from January 13. While a credible break below will target the next support at 14.1738 the low from January 10.
Don’t miss a beat! Follow us on Telegram and Twitter.
More content
- Download our latest quarterly market outlook for our longer-term trade ideas.
- Follow Nikolas on Twitter.
- Do you enjoy reading our updates? Become a member today and access all restricted content. It is free to join.