USD/ZAR: Failure to reclaim 18.02/18.15 could prompt deeper drop – SocGen
|Economists at Société Générale analyze USD/ZAR technical outlook.
Below 17.35, next potential objectives could be at 16.93 and January low of 16.70
USD/ZAR formed a series of lower peaks and troughs and subsequently breached a multi-month ascending trend line. It recently gave up the 200-DMA resulting in an extended correction. The pair has approached projections of 17.40/17.35.
Daily MACD is within deep negative territory denoting an overstretched down move. A bounce can’t be ruled out however the MA near 18.02/18.15 is expected to provide resistance.
Holding below the 200-DMA, there would be risk of a deeper downtrend. Below 17.35, next potential objectives could be at 16.93 and January low of 16.70.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.