USD/ZAR: Uptrend to resume once a break above 19.30 materializes – SocGen

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The Rand strengthened about 0.5% vs. the USD last week. Economists at Société Générale analyze USD/ZAR technical outlook.

Direction lacking

USD/ZAR tested intermittent support near 17.40 representing the 38.2% retracement from 2021 and quickly reclaimed the 200-DMA. The bounce has so far remained stalled near August high of 19.30. A sideways consolidation is underway. Signals of a large decline are not yet visible; the 200-DMA near 18.35/18.10 should be an important support zone near term.  

Daily MACD is within positive territory denoting prevalence of upward momentum. Once a break above 19.30 materializes, the uptrend is expected to resume. Next objectives would be at June high of 19.92 and projections of 20.25.