Source: PaxForex Premium Analytics Portal, Fundamental Insight

The South African Current Account for the second quarter is predicted at ZAR305.1B, and to the Current Account Percentage of GDP at 4.90%. Forex traders can compare this to the South African Current Account for the first quarter, reported at ZAR267.3B, and the Current Account Percentage of GDP at 5.00%.

South African Manufacturing Production for July is predicted to decrease 3.0% monthly and increase 3.6% annualized. Forex traders can compare this to South African Manufacturing Production for June, which decreased 0.7% monthly and increased 12.5% annualized. 

US Initial Jobless Claims for the week of September 4th are predicted at 335K, and US Continuing Claims for the week of August 28th are predicted at 2,744K. Forex traders can compare this to US Initial Jobless Claims for the week of August 28th, reported at 340K, and to US Continuing Claims for the week of August 21st, reported at 2,748K.

The forecast for the USD/ZAR remains bearish despite its recent sell-off. Price action now challenges the Senkou Span B of its Ichimoku Kinko Hyo Cloud. Traders should expect a rise in volatility as bulls and bears battle for control over the next move. The descending Tenkan-sen crossed below the Kijun-sen, which shows a mild bearish bias, suggesting selling pressure prevails. After the CCI dropped into extreme oversold territory and reversed, traders should wait for another breakdown before placing new short positions. Can bears extend their dominance over the USD/ZAR and force more downside? 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 14.1260 to 14.3490 zone, PaxForex recommends the following trade set-up:

• Timeframe: D1           
• Recommendation: Short Position
• Entry Level: Short Position @ 14.2130
• Take Profit Zone: 13.5145 – 13.6765
• Stop Loss Level: 14.4300

Should price action for the USD/ZAR breakout above 14.3490, PaxForex recommends the following trade set-up:

• Timeframe: D1           
• Recommendation: Long Position
• Entry Level: Long Position @ 14.4300
• Take Profit Zone: 14.6300 – 14.7715
• Stop Loss Level: 14.3490

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