USD/ZAR to sink to 13.80 on a break below 14.10 – SocGen

USD/ZAR has staged a deeper pullback after facing resistance at the upper band of a channel near 15.40 last month. Tanmay Purohit, Technical Anlayst at Société Générale, identifies next key support levels at 14.10 and 13.80.

USD/ZAR to regain upside momentum above 14.60

“USD/ZAR has dipped below the 200-DMA and is now probing the daily Ichimoku cloud near 14.10 which is also the 61.8% retracement from June. This could be a potential support. 

“An initial rebound is not ruled out, however, the channel near 14.60 must be reclaimed for regain of upward momentum.”

“Failure to hold above 14.10 can lead the pair lower towards 13.80 with next support at recent low of 13.39.”