The South African Rand is down today after disappointing employment data for the top African economy were released to the market. Unemployment rate rose by 4% to reach 29%, while the number of unemployed adults in the country rose from 6.2million people to 6.7million people. As a result the USDZAR is up slightly and is currently trading at 14.2149.
The ZAR has been under pressure despite the plans by the US Fed to reduce interest rates. This is as a result of a slew of disappointing data for the month of July. The economy of the country is also grappling with high profile corruption, even as former President Jacob Zuma fights corruption charged in court.
Technical Play for USDZAR
After breaking out of the symmetrical triangle on the 4-hour chart of July 25, the USDZAR hit resistance at 14.3063 and has retreated slightly. It is presently trading at 14.23500 and is heading towards the R1 pivot resistance level.
A daily close above the 14.2612 R1 pivot will push the USDZAR higher towards key resistance areas at 14.37397 and 14.40335 respectively.
On the flip side, rejection at the R1 pivot will push the pair down to the key support levels seen at the 14.0921 and 14.03573 price levels respectively.