USD/ZAR Forecast in December 2021.

  USD/ZAR Forecast in December 2021. It is believed that the month should continue to be good for the US dollar and this market will be no different. The dollar has been depreciating overall, while the US dollar has continued to rise quite well over the past few weeks. The South African rand is known to be an emerging market. Supply chain problems hit emerging markets hard. Like most of these commodity economies, "waiting" is useless if the goods are not reaching the customer. So much so that the coronavirus pandemic hit South Africa especially badly. Postponing vaccinations will continue to be a problem for the fragile economy, adding more misery. The Federal Reserve is embarking on a process of reducing its bond purchases, which tends to be particularly difficult for emerging market economies.

USD/ZAR Forecast in December 2021.

From a chart perspective, it took a while for the pattern to break out, but the markets really did show a slight upside. Given the foreseeable possible targe the "measured move" looks like the 17,50 rand longer term target and will be so for the majority of next month. The neckline was 15,50, so this pattern has only recently been released. The US dollar will be considered a safe currency in this pair, and while the USD will rise against many majors, it will be even stronger against minor currencies. Vaccine news in places like Johannesburg, Cape Town and Pretoria will also need to be watched closely as emerging market currencies are known to tend to localize. December, It is thought that it should continue to be good for the US dollar and the market will be no different. Not sure if 17.50 will hit next month. This is probably a story for the month of January.

USD/ZAR Forecast in December 2021.

   

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EUR/USD Forecast in December 2021