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FxWirePro: USD/ZAR slips as dollar weakens after PCE inflation data

• USD/ZAR dipped on Thursday as South African rand strengthened against a softer dollar ​  as investors digested a U.S. ‌inflation reading that largely met expectations.

•  The greenback slipped ⁠about 0.3% against a basket of currencies after ​the release of the U.S. personal consumption expenditures price ​index, which eased some concerns about imminent Federal Reserve rate hikes..

•  Data on Thursday showed that South Africa's producer ‌inflation quickened ⁠to 7.8% year-on-year in May from 4.8% in April, exceeding Reuters economists' expectations of 6.7%.

•  Like other risk-sensitive currencies, the rand often takes ​cues from global drivers, in addition to ​domestic economic data..

• Immediate resistance is located at 16.556(50%fib), any close above will push the pair towards 16.695(Higher BB).

• Strong support is seen at 16.367(SMA20) and break below could take the pair towards 16.2720(61.8%fib)

Recommendation: Good to buy around 16.350 with stop loss of 16.200 and target price of 16.700

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