FxWirePro: USD/ZAR edges higher but bulls lack punch

• USD/ZAR strengthened  on Thursday as  South Africa's rand weakned ahead of the release of a local purchasing managers' index (PMI) and November production figures for the manufacturing sector.

• An Absa PMI survey due at 0900 GMT will provide insight into manufacturing conditions in Africa’s most industrialised economy.

•South Africa's statistics agency will publish manufacturing output ZAMAN=ECI at 1100 GMT, with analysts polled expect a 0.2% rise.

• Central bank data showed net foreign reserves rose to $71.14 billion at end-December from $70.02 billion in November.

• Immediate resistance is located at 16.572  (38.2%fib), any close above will push the pair towards 16.651 (SMA 20).

• Strong support is seen at 16.309(23.6%fib) and break below could take the pair towards 16.256(Lower BB)

Recommendation: Good to sell around 16.500 with stop loss of 16.900 and target price of 16.200