USD/ZAR: Short-term pullback towards 18.35 on the cards – SocGen

The Rand is down over 9% YTD. Economists at Société Générale analyze USD/ZAR  technical outlook. 

Break above 19.35 essential to affirm next leg of uptrend

USD/ZAR approached projections at 17.40/17.35 last month and quickly reclaimed the 200-DMA resulting in a swift bounce. The move has petered out near interim hurdle of 19.35 representing the 76.4% retracement from June. 

A short-term pullback can’t be ruled out towards 18.35 and the MA near 18.10. This could be an important support. 

A break above 19.35 would be essential to affirm next leg of uptrend.