USD/ZAR to head back lower towards the September low at 14.0630 – Commerzbank

Recent US dollar strength versus the South African rand has come to an end. USD/ZAR topped out at 15.4929 and is to slide back towards the September trough at 14.0630, Axel Rudolph, Senior FICC Technical Analyst at Commerzbank, reports. 

USD/ZAR depreciation is on the cards

“The 55-day moving average at 14.7906 and also the 200-day moving average and six-month support line at 14.5638/4530 are now back in the frame, as is the October trough at 14.3520 and also the September low at 14.0630.”

“Below the September low at 14.0630 the June trough can be spotted at 13.4066.”

“We will adhere to this bearish forecast while resistance at 15.4929 caps on a daily chart closing basis. Short-term sideways trading is likely to be seen, however.” 

“Above the 15.6645/6945 zone lies the May 2016 high at 15.9854.”