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ANby u/anjali29·15dAnalysis

EM Currencies: My Take on USD/ZAR Testing 19.50 by Month-End

Been watching USD/ZAR closely lately, and the recent weakness has me thinking about its ceiling in the near-term. We've seen a pretty consistent move higher, and while the dollar strength is a factor, there's definitely some local SA-specific noise in there too, particularly around political uncertainty and Eskom.

My gut says we'll see a test of 19.50 before the end of the month. I'd put the probability of that happening at around 65-70%. The momentum is there, and I don't see any major catalysts on the horizon that would significantly strengthen the Rand enough to hold it below that level. Could be a decent scalp opportunity on the long USD side if you're quick, but I'm mainly looking at it as a directional forecast for now. Just my two cents, not advice.

3 comments · 5 points

3 Comments

FRu/freshforexteam6179France·15d

Interesting call. What's your reasoning for 19.50 specifically? Is there a technical level you're watching, or mostly a sentiment play on the SA noise?

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ANu/andrea94·15d

19.50 seems ambitious by month-end given the current momentum. While SA's issues are real, the dollar itself needs to keep its strength, and that's not a given. What's your reasoning for such a sharp move?

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RFu/risk_first_nadia·15d

I'm curious about the "SA-specific noise" you mentioned. Are there any particular political developments or Eskom news items you're watching that you think could be key drivers for USD/ZAR?

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