USD/ZAR bounces off lows near 11.50

• ZAR in 3-year tops vs. USD.
• Domestic politics behind the move.
• C.Ramaphosa elected President.

The South African Rand is now giving away some of this week’s strong gains and is driving USD/ZAR to the 11.65 area.

USD/ZAR in 3-year lows

The par is alternating gains with losses in the European afternoon, trading in the area of 3-year lows around 11.6300 for the time being.

ZAR has accelerated its appreciation this week following former President J.Zuma’s resignation on Wednesday after increasing pressure by the African National Congress (ANC).

The Parliament elected businessman and ANC’s leader C.Ramaphosa as President, who is expected to push forward much-needed economic reforms in the second-largest African economy.

USD/ZAR relevant levels

The pair is now up 0.13% at 11.6299 facing the next hurdle at 11.9146 (10-day sma) seconded by 11.9417 (21-day sma) and then 12.2058 (high Feb.8). On the flip side, a breach of 11.5617 (2018 low Feb.16) would expose 11.3580 (low Feb.26 2015) and finally 11.2540 (low Feb.5 2015).