FxWirePro: USD/ZAR extends losses ,eyes 16.400 level

• USD/ZAR dipped below 16.700 level  on Monday  South African rand gained as prices of precious metals  a key export  rose on global markets.

•  Gold hit a record high on Monday, riding on growing expectations of further U.S. interest rate cuts and strong safe-haven demand.  

• Platinum prices have also rallied sharply, trading near 17-year highs, providing an additional tailwind for the currency given South Africa’s status as a key global producer.

•On the domestic front, improving fiscal dynamics, relatively contained inflation, and signs of gradually strengthening economic growth have helped underpin investor confidence.

 • The rand has had a strong year, rising more than 12% against the dollar thanks to South Africa's improved fiscal performance, success containing inflation and soaring precious metals prices.

• Immediate resistance is located at 16.789 (Dec 18th high), any close above will push the pair towards 16.951(SMA 20).

• Strong support is seen at 16.618(23.6%fib) and break below could take the pair towards 16.571(Lower BB)

Recommendation: Good to    sell  around 16.700 with stop loss of 16.900 and target price of 16.400