Economists at Société Générale analyze USD/ZAR technical outlook.

A short-term up move towards 19.02 and 19.23 is not ruled out

USD/ZAR has staged an initial bounce after approaching interim support zone of 18.10/18.00 representing the 200-DMA and the ascending trend line drawn since April 2022. Interestingly, this MA has cushioned multiple declines in recent uptrend and is expected to be a crucial support. 

A short-term up move towards 19.02 and 19.23, the 61.8% retracement of the pullback is not ruled out. 

Only a break below 18.10/18.00 would denote risk of a deeper down move.