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Talking Points on the USD/ZAR: The USD/ZAR remained firm above the Key Psychological Level of 14.00. Former South African President Jacob Zuma begins his prison sentence on charges of contempt and political tensions. rise Fundamentals begin to falter as SA continues its struggle against the Delta variation. US Dollar strength and commodity prices remain significant catalysts for the ZARFundamentals begin to falter as SA continues its fight against the Delta variant. All things considered, the volatile Rand has had a solid year against its main peers, exhibiting a high level of resilience that has managed to keep the pessimistic narrative about USD/ZAR alive until now. With price action currently consolidating inside a well-defined range, a rally in the US Dollar could give bulls with the necessary momentum to reverse the systemic trend’s direction. Learn why news events are important at the DailyFX Educational Center. The Importance of Fundamental Analysis in Forex The Rand has been supported by a combination of higher commodity prices and a shift in risk sentiment since the start of 2021, bolstering demand for the Emerging Market (EM) currency as the country shows signs of recovery. Concerns over the ongoing battle with rising Covid-19 cases, corruption, and unemployment are weighing heavily on the economy as the country approaches the end of the two-week level lockdown, putting enormous strain on businesses and customers who have received little support from the government. Setups for the USD/ZAR Exchange Rate The price of the USD/ZAR is currently stuck in a well-defined range between important Fibonacci levels from the 2021 move. USD/ZAR has gained over prior trendline resistance, prompting prices to momentarily halt at the 38.2 percent retracement, which is holding as short-term support at 14.23, after rising above past support, which continues to hold at the important psychological level of 14.00. Although the formation of a Doji candle (yesterday) suggests indecision, the Moving Average Convergence/Divergence (MACD) remains far above the zero line, implying that bullish momentum is still in play, at least for the time being. USD/ZAR Chart of the Day Tammy Da Costa created this chart with IG—- Tammy Da Costa contributed to this article on behalf of DailyFX.com. Tammy can be reached at @Tams707 on Twitter./nRead More

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