The rand ended yesterday’s trading day at 13.3196 to the dollar with respective highs trading at 13.4554 and lows at 13.2726.
The rand gained more than 1% yesterday, virtually leading to repairs that the South African currency suffered on Monday. The dollar’s retracement across the board also saw investors seeking alternatives to the Turkish Lira.
The Turkish Lira fell to a 10 year low on Monday after American state, Washington reported that they were reviewing Turkey’s duty-free access to the U.S market. This saw investors opt for returns in South African assets and elsewhere in emerging markets.
As far as the chart is concerned, not much can be observed as the trend continues to remain choppy and consolidate between price levels 13.15 and 13.50.
Yesterday’s data from Stats SA (Statistics SA) showed manufacturing output grew by a small margin in June, while contracting on a quarterly basis, although the data brought no movement to the pair.
We can expect price to continue consolidating between support level 13.15 and 13.39.
Can the Euro force a comeback?
Support level 1.1554 proved to be a strong level as last Weeks dollar rally came to a halt when Monday’s bearish momentum seemed to be slowing down.
Yesterday’s candle saw the Euro back into the equation taking prices as high as 1.16081. Continuing bullish momentum is unlikely with price set to enter support level 1.1650 and could see the creation of a new resistance level which will affirm prices imminent re-test of stubborn support at 1.1554.
Trade Idea: Please see arrows for ideas.
1. If price sits above support level 1.1650, wait for a pullback and bullish price action signal to confirm entry.
2. If price sits below support level 1.1650 (creating a resistance), wait for a pullback and bearish price action signal to confirm entry.
Dollar-Yen Indecision Grapples
Yesterday’s candle saw significant pressure from the bears mount up as sellers tried to push price below uptrend trend line.
It’s important to note that on Friday, last week. China threatened to place tariffs on $60 billion worth of American goods if Trump’s administration inflicted their bid on Tariffs as well. The ongoing trade disputes between both countries are one to closely watch.
Trade Idea: See chart for details.
If price breaks out above yesterday’s candle, wait for the pullback and bullish price action signal on support line 111.34 to confirm bullish entry.
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