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SOUTH AFRICAN RAND / U.S. DOLLAR

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USDZAR Approaching Key Demand Zone: Election Insights and MarketAs the South African elections draw near, there's heightened anticipation about potential political shifts. However, substantial changes are necessary for the current government to be unseated. In this context, the USDZAR is approaching a critical demand area between 17.42-17.88, where buyers previously stepped in. This zone could be a pivotal point for bullish reversals, aiming for the equal highs at 19.40. 📈💬 Key Demand Area and Potential Bullish Reversals The demand zone around 17.42-17.88 is significant because it represents a region where buying pressure has previously outstripped selling pressure, leading to a price increase. When price approaches this zone again, it often acts as a support, attracting buyers and potentially sparking a bullish reversal. 🔄💵 Targeting Equal Highs at 19.40 Equal highs at 19.40 serve as an important target for several reasons: Liquidity: Equal highs often attract liquidity as stop orders tend to accumulate above these levels. Market makers and large traders might push the price towards these highs to capture this liquidity. Psychological Resistance: These levels are psychologically significant for traders, often acting as a magnet for price. Previous Rejection: This area has historically seen price rejection, making it a critical level to watch for potential reversals or breakouts. Post-Election Outlook and Eskom Challenges It's expected that load shedding will resume post-elections, with Eskom working tirelessly to manage the energy crisis. This return to reality could weigh heavily on the South African economy and, by extension, the ZAR. Thus, a bullish USDZAR scenario remains plausible as these fundamental issues resurface. ⚡🏢 🔍 Disclaimer: This post reflects my personal views and analysis. Trading involves risk, and it's crucial to conduct your own research before making any trading decisions. Happy Trading! 🚀📉📈
Long
by Mike_SnD
Dust still far from settled post SA electionsThe rand managed a strong recovery to a low of 18.02 in the lead up to the national elections. This move was largely due to the strong precious metal prices, particularly platinum, and the dollar which remained relatively range bound. The critical resistance levels to watch are the 200-day MA at 18.77 and the 61.8% Fibo retracement rate of 18.87 (very satisfying kiss off the blue neckline and the 61.8% Fibo). A failed break above these levels will allow the rand to recover some of its election losses towards the support rate at 18.55. Continued political uncertainty regarding the new coalition government will however see the pair break above 18.87 and hurtle towards the yearly high of 19.40. Over the slightly longer-term, a favorable political outcome following the coalition negotiations will attract foreign capital back into the local market which will allow the rand to pull the pair below 18.00 at the back of the year (best case scenario for the rand).
by Goose96