USD/ZAR: Potential return towards highs of August/September at 19.27/19.30 – SocGen

USD/ZAR skipped back above the 200-DMA at 18.63. Economists at Société Générale analyze the pair’s outlook.

18.50 is first support

USD/ZAR recently tested the ascending trend line drawn since April 2022 near 18.10 resulting in a sharp rebound. It has moved beyond 200-DMA and recent pivot high.

Daily MACD is in negative territory, but it has crossed above its trigger line denoting receding downward momentum.

A retest of graphical levels near 19.27/19.30 representing highs of August/September is likely. 

18.50, the 50% retracement of recent bounce is first support.