USD/ZAR set to extend its rally towards the 15.6645/15.6945 zone – Commerzbank

The South African rand is taking a hit against the US dollar. As economists at Commerzbank note, the USD/ZAR pair is fast approaching the March peak at 15.5716 above which is a long-term pivot at 15.6645/15.6945.

USD/ZAR is approaching its major long-term pivot at 15.6645/15.6945

“USD/ZAR’s rally is ongoing with the March peak at 15.5716 being in focus. Further up the September 2018 and January 2021 highs can be spotted at 15.6645/15.6945. A break above it should trigger a decent rally to the 17.7863 August 2020 high.” 

“Minor support below the 14.9972 July high is seen along the 200-day moving average at 14.6397. Further support comes in between the three month support line and 55-day moving average at 14.4766/14.4519. Further down sits the early August low at 14.2237.”