Source: PaxForex Premium Analytics Portal, Fundamental Insight
The South African Current Account for the fourth quarter is predicted at ZAR150.0B, and to the Current Account Percentage of GDP at 2.60%. Forex traders can compare this to the South African Current Account for the third quarter, reported at ZAR226.4B, and the Current Account Percentage of GDP at 3.60%.
South African Mining Production for January is predicted to increase 3.5% annualized. Forex traders can compare this to South African Mining Production for December, which decreased 1.1% annualized.
South African Manufacturing Production for January is predicted to increase 0.9% monthly and 2.9% annualized. Forex traders can compare this to South African Manufacturing Production for December, which rose 2.3% monthly and decreased 0.1% annualized.
US Initial Jobless Claims for the week of March 5th are predicted at 216K, and US Continuing Claims for the week of February 26th are predicted at 1,475K. Forex traders can compare this to Initial Jobless Claims for the week of February 26th, reported at 216K, and Continuing Claims for the week of February 19th, reported at 1,476K.
The US CPI for February is predicted to rise 0.8% monthly and 7.9% annualized. Forex traders can compare this to the US CPI for January, which increased 0.6% monthly and 7.5% annualized. The US Core CPI for February is predicted to expand 0.5% monthly and 5.9% annualized. Forex traders can compare this to the US Core CPI for January, which rose 0.6% monthly and 6.0% annualized.
The forecast for the USD/ZAR remains bearish, driven lower by its descending Ichimoku Kinko Hyo Cloud. Short-term volatility may increase after the Kijun-sen, and the Tenkan-sen, flatlined, but a pending bearish crossover can ignite another sell-off. Traders should also monitor the CCI after it has reached extreme oversold territory, as it has more downside potential. A temporary move above -100 may result in a false breakout and fuel an extension of the correction. Can bears drive the USD/ZAR into its next horizontal support area? Subscribe to the PaxForex Daily Fundamental Analysis and earn over 5,000 pips per month.
Should price action for the USD/ZAR remain inside the or breakdown below the 14.9720 to 15.1500 zone, PaxForex recommends the following trade set-up:
- Timeframe: D1
- Recommendation: Short Position
- Entry Level: Short Position @ 15.0485
- Take Profit Zone: 14.0560 – 14.2160
- Stop Loss Level: 15.2650
Should price action for the USD/ZAR breakout above 15.1500, PaxForex recommends the following trade set-up:
- Timeframe: D1
- Recommendation: Long Position
- Entry Level: Long Position @ 15.2650
- Take Profit Zone: 15.4950 – 15.7050
- Stop Loss Level: 15.1500
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