USD/ZAR: 19.25/19.38 is crucial hurdle – SocGen

USD/ZAR is approaching hurdle of 19.25/19.38. Economists at Société Générale analyze the pair’s technical outlook.

Stuck in a triangle

USD/ZAR has evolved within a large symmetrical triangle since June last year and recently tested the lower limit near 18.50 which is also the trough of February. An initial rebound has happened, but the pattern denotes lack of clear direction.  

Current bands of the formation near 18.50 and 19.25/19.38 are key levels. Move beyond one of these limits is essential for confirming a directional move.