USD/ZAR to head lower toward critical support zone at 17.40/30 – SocGen

USD/ZAR has returned below 18.00. The pair could challenge the critical support zone at 17.40/30, analysts at Société Générale report.

Neckline at 18.10 is first hurdle

“USD/ZAR failed to establish itself above the peak of last October near 18.58 and underwent a brief consolidation in the form of Head and Shoulders. It has breached the neckline (18.10) denoting possibility of short-term down move.”

“The pair is expected to head lower towards 17.64 and perhaps even towards the target of the pattern at 17.40/17.30 which is also the 200-DMA. This is a crucial support zone.”

“Neckline at 18.10 is first hurdle.”