Watching $USDZAR at current levels, thinking about options hedges
Been keeping an eye on $USDZAR today, particularly around the 16.32 level. We saw a push up to 16.3523 earlier, and it's since pulled back slightly but is still holding above the 16.30 mark. For anyone long ZAR assets, the recent consolidation around here after the previous run-up feels like a potential inflection point.
I'm considering whether to layer in some protective put spreads on the ZAR or a call spread on $USDZAR if we see a sustained break above 16.35. The risk, as I see it, would be a strong move back below 16.29, which would negate the current upward pressure. If that happens, any bullish options position would obviously be in trouble. For now, it's a waiting game to confirm the direction, but the current daily candle formation is interesting enough to warrant attention for potential hedges.