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FxWirePro: USD/ZAR holds above 16.600, maintains bullish bias

• The USD/ZAR edged  higher on Thursday as rand dipped weaker-than-expected manufacturing data..

• South Africa’s manufacturing output fell 4.3% year-on-year in August after rising 1.1% in July, data from the statistics agency showed on Thursday.

• Factory production ‌decreased ⁠3.1% month-on-month in August, ​after ​increasing ⁠by 2.2% ​month-on-month ​in ⁠July.

• The sector continues to face pressure from elevated input and power costs, while US tariffs, fuel price increases and supply constraints are hurting output and competitiveness.

•In common with other risk-sensitive currencies, the rand often takes ​cues from global drivers such as US ​economic ⁠indicators and monetary policy, in addition to domestic economic data.

• Immediate resistance is located at 16.747  (38.2%fib), any close above will push the pair towards 16.835(Higher BB).

• Strong support is seen at 16.587 (50%fib) and break below could take the pair towards 16.432(61.8%fib)

Recommendation: Good to buy around 16.600 with stop loss of 16.300 and target price of 16.800

 

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