FxWirePro: USD/ZAR downtrend slows, but bearish sentiment remains

• USD/ZAR fell initially but later recovered as investors assessed key U.S. labor market data and awaited Friday’s inflation report for signals on the Fed’s policy outlook.

• Labor Department data showed nonfarm payrolls increased by 130,000 in January, exceeding forecasts of 70,000, while November and December figures were slightly revised lower..

• The unemployment rate ticked lower to 4.3% from 4.4% in December, below forecasts for a reading of 4.4%.

• Investors now await U.S. inflation data on Friday for signals on the economic outlook heading into the new year.

• On the domestic front, South Africa’s statistics agency is set to release December mining and manufacturing data on Thursday.

• Immediate resistance is located at 15.966(38.2%fib), any close above will push the pair towards 16.074 (SMA 20).

• Strong support is seen at 15.720(23.6%fib) and break below could take the pair towards 15.574(Lower BB)

Recommendation: Good to sell around 15.980 with stop loss of 16.000 and target price of 15.900