The dollar’s recent run of strength has come to an end due to mixed news from the NFP. The rapid spread of Delta variant infections continues to wreak havoc on the South African economy. Could we see the appearance of higher highs as a result of key descending trendlines?
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Shortly after the release of the NFP data, the ZAR rises.
After the latest NFP data indicated a positive surprise in job additions in June, the ZAR rose against the USD, Sterling, and Euro. The unemployment rate, on the other hand, increased from 5.8% to 5.9%. The definition of ‘unemployed’ is typically the reason why the unemployment rate worsens despite additional jobs being added. The recent summer optimism may entice a frustrated former job seeker back into the labor market, increasing the number of unemployed people reported. See the DailyFX for all market-moving data and happenings. Calendar of Economic Events In response to rising Delta Variant Infections, South Africa has implemented an adjusted Level 4 lockdown. The Delta type of the coronavirus has shown to be highly contagious, putting a huge pressure on hospitals across the country, with Gauteng being by far the worst hit. To combat infection, restrictions on gatherings and the consumption of alcohol have been imposed. Infections caused by covids throughout time: South Africa is a country in Africa. USD/ZARUSD/ZARUSD/ZARUSD/ZARUSD/ZARUSD/ZARUSD/ZARUSD/ZARUSD/ZARUSD/ZARUSD/ZARUSD/Z After reaching the June low, the dollar clawed back some ground against the Rand, which may be in jeopardy following the post-NFP pricing movement. The pair has broken above a long-term falling trendline, and now appears to be approaching the same trendline as a level of support. As an indicator of a further, deeper downturn, 14.14 appears to be the level to watch. A close above the trendline, on the other hand, might make for an interesting start to next week’s trading, as 14.50 becomes the next psychologically significant mark to assess a potential long-term reversal. IGGBP/ZARGBP/ZAR mirrored most of the recent USD/ZAR price action and witnessed a move higher off the previous bottom, according to a chart created by Richard Snow. The psychological level of 20.00, however, has kept the ascending channel in check, and today’s price action exhibited another powerful rejection off this level as well as the 100 SMA. A breach below the ascending channel and the 19.50 level could signal a more significant reversal of the recent bullish trend. Richard Snow, IG, has created a daily chart for the GBP/ZAR currency pair. EUR/ZARFor the first time since March this year, the EUR/ZAR pair attempted to break above its long-term trendline yesterday, and it did so again today (blue circle). Price action, on the other hand, began to go further in the run-up to the NFP, trading below the 17.00 mark. If the downturn is expected to continue, the next level of support is 16.70. Before evaluating any probable change in the long-term trend, a break above the long-term trendline and a rise towards 17.50 are required. Richard Snow, IG, has created a daily chart for the EUR/ZAR currency pair. {{GUIDE|BUILDING CONFIDENCE IN TRADING| Never overlook the psychological side of trading—- Richard Snow wrote this article for DailyFX.com. Richard can be reached via Twitter at @RichardSnowFX./n
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