USD/ZAR seen edging lower towards 15.00 over next 12 months – SocGen

USD/ZAR has broken below 17.00. Economists at Société Générale expect the pair to trend lower toward 15.00 over the coming months.

An initial rebound is expected

“An initial rebound is expected however the channel limit at 17.27 and recent pivot high of 17.55 are likely to be near term hurdles.”

“Failure to hold 16.85 can extend the decline towards 16.65 and perhaps even towards the 200-Day Moving Average near 16.40/16.35. This could be a crucial support zone.”

“We see the Rand strengthening towards 15.00/USD over the next 12 months.”