The Canadian Dollar is trading at 12.34 against the South African Rand this morning. With a long term increase expected going into FY21, investors should keep an eye on these Forex (Foreign Exchange) pairs as good return options are available.
The revenue from a 5-year investment is forecasted to be around +44.09; an investment of $100 could go up to $144.09 by 2025.
Comparatively, 1 USD has an exchange rate of 16.23 against 1 ZAR, with strong bearish trends as November approaches.
As the currencies are now hitting an inflection point, the forex pair is “trading near a vital support level which sparked reversals higher mid-September, late July and the second week of June.”
After hitting resistance in September, this month has shown traders that the 16.10000 juncture is the next challenge to be faced, “if this mark is broken lower and trading is sustained beneath this value it will create a target for those who are pursuing bearish momentum likely around the 15.87000 value which was last seen in early March” prior to the pandemic where ZAR steadily rose to around 19.10000 at the beginning of April.
Moving into next month, the US presidential election will fluctuate global equity markets until the voting period has ended. Sellers should watch if USD/ZAR falls below the 15.87000 juncture, using “risk management while actively seeking downside and challenging support” to sustain their investments.
With a speculative price range between 15.37000 to 17.20000, USD/ZAR support from forex traders will be vital at this 16.10000 mark as bullish movement is anticipated if the 17.20000 junctions are reached.
By Surina Nath