USD/ZAR is Going to Stabilize as the Local Election Results Will be Clear

The South Africans cast their votes yesterday in the 2021 municipal elections among the Eskom that will continue for the day. The votes will be calculated to figure out which parties will rule in the winning situation in their cities. RAND Corporation (Research and Development) has surrendered the recent gains in the last two weeks as a reversal took shape. The commodities that are linked with gold, platinum, and ore prices have been influenced by ZAR. All the affected prices are because of the local elections leading to conduct soon in South Africa.

The daily chart shows you the upside and downside reversal pattern appearing at the 15.38/9 level that is like the august month’s major high. The bullish momentum got continued in the USD/ZAR pair that could see a move toward the value of 15.57 and 15.70 level on the later part. Some experts are expecting the price to get down to 15.25, which will showcase the bullish continuation of the trend. USD/ZAR is going at the higher end of 14.00-15.50 that has the major price action that is apart from a massive blowout during the pandemic peak.

It’s great to watch the value here at 15.70, which is a level where the ZAR bulls have pushed the bears for 14.50. The much expected fed tapering announcement and crucial NFP data will boost volatility and it could receive a breach at the moment above 15.70. The South African reserve bank will hold the final monetary policy committee meeting of the year on the 18th of November, where it’s not clear whether the rates will remain on hold or see an increase. The central bank’s timing will remain the key point here. The prices of the SARB are going to reprieve for the ZAR till the fed starts its price rise cycle concerned for H2 2022.