USD/ZAR: The topside is currently limited to the 15.20-15.40 area – Credit Suisse

USD/ZAR topside is currently limited to the 15.20-15.40 area. Economists at Credit Suisse retain a short-term range target of 14.70-15.30 for USD/ZAR.

Lower target range if the ongoing worldwide bid for the USD reverses again

“Further increases in USD/ZAR from here require the BBDXY to continue to push higher. If that condition is met, USD/ZAR will probably meet strong resistance only at around 15.39- 15.40 (the 20 August high).”

“We note that the three largest bottom-to-top intra-day increases in USDZAR so far this year ranged between 8.0% and 8.2%. A similar move from the 10 September low would take USD/ZAR to around 15.20.”

“We conclude that the top-end of our USD/ZAR target range (14.70-15.30) still looks appropriate. But we will most likely lower our target range in case the general ongoing demand for the USD against EM currencies fades again.”