EUR/ZAR Trading forecasts and signals

Euro/South African Rand (EUR/ZAR) is an exotic cross–pair of the international currency market with the highest volatility, reaching 2000-2500 points per day.Experienced scalpers perfectly use this opportunity to get fast and high returns, despite the impressive spreads on EURZAR, reaching up to 250 or even 300 points, transactions with the right organization of trading easily pay off and can bring a profit in a day, 10 times the size of even such a large spread.EUR ZAR forecast (online) for todayAlthough the overall dynamics of the pair has been positive for more than 20 years, it is quite difficult to predict the movements of the euro against the rand in the medium and short term. It is very difficult to make a forecast for timeframes H4 and less for this pair, because due to low liquidity and high volatility, price movements on the chart can be extremely sharp and chaotic.EUR/ZAR Chart and Signals As for intraday activity analysis, the pair trades best between 09:00 and 18:00 GMT, which almost completely corresponds to the European session and the beginning of the American one. The rest of the time, the intensity of trading is significantly reduced, but this does not mean at all that the pair is sleeping or slowly flattening. What's for the Euro/The rand is a "weak volatility", it can often exceed the maximum intraday fluctuations of standard major currency pairs on Forex by 1.5-2 times.If you look at the quotes as a whole, it becomes noticeable how the rand is gradually getting cheaper against the euro.Nevertheless, despite the overall positive dynamics of the pair, significant collapses and corrections occur periodically.EUR/ZAR currency pairIn an exotic Euro cross-pair against the South African Rand, the quote shows how many rands you need to pay for one euro, which in this case acts as the base currency, and the rand is convertible. In most terminals, the price is displayed in the standard four-digit form (14,0595) or five-digit (14,05951), if tick fluctuations are taken into account.The volatility calculator for 20 weeks shows that today the Euro/Rand passes an average of 1800-2500 pips per day, moreover, there is usually no clear advantage in favor of a particular day of the week.Scalpers from Europe, South Africa and the USA, as well as international companies doing business in the Republic of South Africa, show the greatest interest in such a pair. The not very high prevalence of the tool affects both the dynamics and the number of relevant and high-quality analytical materials, which are not easy to find for this pair, especially when it comes to the Russian-speaking community of traders. Nevertheless, on the forums you can find people interested in Euro / Rand and posting their own author's analytics, which will be especially useful to market participants with little experience.Read more: USD/SGD: exchange rate online, signals and forecast for todayWhat influences the EUR/ZAR exchange rate and factors influencing quotesAnalytics The European Union is a political and economic structure that includes 28 states that are at different degrees of economic development and joined at different times, which causes significant differences in their indicators. Nevertheless, in a generalized form, the sector-by - sector data of the analysis of the EU economy look as follows:About 70.5% is in the service sector and trade;Approximately 27.3% of GDP is provided by industry;No more than 2.1% is accounted for by agriculture.The Republic of South Africa is a fairly large and most developed country in all of Africa. A unique culture based on Zulu, Dutch and English traditions gives the country a special unique flavor. The wealth of coal, ore, gold, diamonds and other valuable resources brings impressive revenues to the country, making the rand rate very dependent on world prices for gold and raw materials, which must be taken into account when compiling analytics.The mild and warm climate provides good conditions for productive agriculture (South Africa is one of the world's main food suppliers) and this despite the fact that more than half of all the country's land is unsuitable for cultivation. The detailed structure of GDP by sector is as follows:Approximately 67.4% is accounted for by trade and services;30.3% of GDP comes from the second most important industry – industrial;About 2.3% is provided by agriculture, whose products not only completely cover domestic food needs, but also serve as one of the most important export items.Today, the EUR/ZAR pair correlates with the following pairs: Dollar/Rand - 92.5%, Pound/Lira - 80.3%, Euro/Lira - 74.8%, Dollar/Lira - 73.9%, Dollar/Peso - 73.7%, CHF/SGD - 69.6%, USD/RUB - 69.3%, EUR/SGD - 67.1%, GBP/AUD - 64.6%, XNG/USD - 61%.There is also a strong negative correlation, most of all manifested in relation to the Rand against the Yen - -92.3%, such stock indices as: US30 - -84,%, US500 – -82.5%, NAS100 – -81%, UK100 – -78.6%, HK50 - -78.5%, as well as AUD/NZD currency pairs – -73.4%, AUD/CAD – -72.8% and GER30 – -67.1%.Since the economy of South Africa is commodity-based, one of the main factors affecting the rand rate (and hence the entire pair) will be world prices for raw materials, diamonds, precious and non-ferrous metals, engineering products, as well as the country's trade balance. For the EU, the indicators indicated in the previous sentence are less important, but they should also be taken into account when making a forecast.Read more: GBP/PLN: quotes, signals and forecasts for today, chartIn addition, it is worth paying attention to:Speeches of officials and statements of the heads of the Central Bank (both countries);The situation on the labor market (relevant for both countries);Economic indicators, the level of business activity, monetary policy;Weather and climatic conditions, natural and man-made disasters in the region (primarily important for South Africa, as a country whose exports are largely related to the supply of raw materials and agricultural products, but also for the EU);The socio-political situation (at the moment it is important mainly for Europe, but it should also be taken into account for South Africa).Features of the currency pairDue to significant differences in interest rates (0% for the EU and 7% for South Africa), carry-trading is possible for this asset, but only on short positions. At the moment, the swap sizes for this currency pair are -38.72 points on long positions and +15.22 on short positions.Despite the fact that the pair is strongly influenced by fundamental factors, trading on it "on the news" can be difficult (especially for inexperienced and not yet fully settled in the world markets traders) due to the fact that some brokers do not publish in economic calendars the release time of important events in South Africa.Therefore, before proceeding to trading such an exotic currency as the rand, it is advisable to check the attitude of the dealing center towards it (whether there are events in South Africa in the calendar, whether analytics are published, ...