In the financial world, scams are pervasive, and the forex trade is no exception. Traders must be vigilant in identifying and avoiding fraudulent forex brokers to protect their hard-earned money. In this article, Traders Union experts explore the latest price forecasts and signals for the USD/ZAR exchange rate based on technical analysis indicators.

USD/ZAR: An Exotic Pair with Unique Traits

USD/ZAR, comprising the US dollar and the South African rand, is considered an exotic pair due to its distinct attributes. It is characterized by a wide spread of several pips, which can suddenly expand, leading to high volatility and low liquidity. Comparatively, the average daily price change for USD/ZAR ranges from 1.3% to 1.6%, while major pairs like EUR/USD typically have a range of 0.8% to 1.1%. The best trading times for USD/ZAR are during the European and American sessions.

Historical Trends of USD/ZAR

Since 2012, the USD/ZAR pair has exhibited a clear upward trend, indicating the rand’s depreciation against the US dollar. While the South African currency strengthened during specific periods, such as 2016-2018 and mid-2020 until mid-2021, the overall trend remains upward. TU experts observe that the price is gradually approaching an all-time high recorded in April 2020. The question arises: will the upward trend persist, and can traders capitalize on it?

USD/ZAR Forecast and Signals

Traders Union regularly provides new editions of USD/ZAR forecast based on technical analysis of moving averages and indicators for various timeframes. Traders can choose the desired timeframe, from 1 hour to 1 week, to access the latest price predictions. Additionally, traders can leverage TradingView’s technical analysis tool to identify entry points: 

Signals such as “Sell” or “Strong Sell” indicate bearish trends.

“Buy” or “Strong Buy” suggest bullish trends.

Short-term signals are best analyzed within 15 minutes to 2 hours.

Long-term signals are suited for 4 hours to 1 week.

Factors Influencing USD/ZAR Long-term Price Forecast

South Africa’s economy heavily relies on the prices of natural resources, including diamonds, gold, coal, and metal ores. This dependency significantly impacts the long-term value of the rand. Additionally, the U.S. monetary policy and statistical data play crucial roles in determining the USD’s value against ZAR and other currencies. Experts at TU point out that while economic statistics from South Africa are infrequent, traders should pay attention to U.S. statistics, such as changes in the discount rate, inflation, and sectoral indices, while building their trading strategies.

Price Prediction Methodology

USD/ZAR price predictions are formulated using a combination of technical analysis tools and statistical instruments to assess the probability of events influencing cryptocurrency prices. Experts also consider:

individual features of a cryptocurrency startup;

its competitiveness;

token circulation;

emission restrictions;

societal usefulness;

development plans;

blockchain vulnerabilities;

historical hacks;

capitalization dynamics compared to competitors. 

These subjective factors contribute to a comprehensive price prediction analysis.

Conclusion

Forex trading, like any financial endeavor, is susceptible to scams. Traders Union analysts recommend traders to stay cautious and informed to avoid fraudulent brokers. USD/ZAR, as an exotic pair, presents unique characteristics with its wide spread, high volatility, and low liquidity. By understanding historical trends, leveraging accurate forecasts, and considering the factors influencing long-term price forecasts, traders can develop sound trading strategies for the USD/ZAR pair. Staying up-to-date with technical analysis indicators and price signals empowers traders to make informed decisions and potentially profit from the ever-evolving forex market.