USD/ZAR has quickly rebounded after forming a low near 16.70. A move beyond 17.41/17.45 is essential to affirm a bullish extension, analysts at Société Générale report.

Failure to defend 16.87 can lead to continuation in down move

“Daily MACD has been posting positive divergence denoting receding downward momentum.” 

“17.41/17.45, the 38.2% retracement of recent down move is near term resistance. Once this is overcome, USD/ZAR is expected to extend the bounce towards 17.95 and the high of October/November at 18.58.”

“Failure to defend the 200DMA at 16.87 can lead to continuation in down move.”