USD/ZAR could retest highs at 19.50 if the bear trend in global bonds continues – SocGen

USD/ZAR has extended its uptrend after overcoming the peaks of last October/March. Economists at Société Générale expect the pair to enjoy further gains.

Technicals for USD/ZAR look overbought

“Domestic factors and higher US bond yields are clouding the near-term outlook for the Rand.”

“Though technicals for USD/ZAR look overbought, a retest of the highs at 19.50 cannot be ruled out if the bear trend in global bonds continues.”

“Next potential objectives are located at projections of 19.72 and the upper limit if a multi month channel near 20.20.”