USD/ZAR: Scope for substantial gains towards 17.30 on a break above 15.70 – SocGen
|USD/ZAR broke above a multi-month descending channel in July which has resulted in a steady rebound. Economists at Société Générale note that the pair has room to rise as high as 17.30 on a break of the 15.70 resistance.
Initial support seen at 14.85
“USD/ZAR has formed an Inverted Head and Shoulders which points towards potential upside.”
“The pair is now inching closer to interim resistance of 15.70 representing the 38.2% retracement of the decline since 2020 and high of January. Once this hurdle is overcome, the bounce would extend towards 16.10/16.30 and even towards the target for the pattern near 17.30.”
“First layer of support is at 14.85.”
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