FxWirePro: USD/ZAR runs out of steam but maintains bullish outlook

•   USD/ZAR firmed early on Wednesday but later retreated as markets absorbed South Africa’s latest economic indicators.

•   South Africa's consumer price inflation increased further in October to the highest level in just over a year, figures from Statistics South Africa showed on Wednesday.

•The consumer price index, or CPI, climbed 3.6 percent year-on-year in October, faster than the 3.4 percent rise in the prior month. The expected inflation rate was 3.7 percent.

This was the highest inflation rate since September 2024, when prices rose 3.8 percent.

• South African retail sales rose 3.1% year-on-year in September after rising by a revised 2.2% in August, Statistics South Africa figures showed on Wednesday.

• Immediate resistance is located at 17.218  (38.2%fib ), any close above will push the pair towards 17.350 (Nov 10th high).

• Strong support is seen at 16.975 (23.6%fib) and break below could take the pair towards 16.933(Lower BB)

Recommendation: Good to buy around 17.100 with stop loss of 17.000 and target price of 17.300