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.”