FxWirePro: Rand extends recovery against dollar, USD/ZAR could test 12.9824 support

Recently battered emerging markets continued to benefit from China's moves to support its economy 

• South Africa's rand firmed slightly against the dollar, extending its recovery after tumbling to an all-time low of 14.00 at the start of the week
   
• Sentiment toward emerging markets was also buoyed after a Fed official said on Wednesday that a Sept hike seemed less appropriate 
• South Africa Jul PPI YY came in less that forecasted at 3.3 % (fcast 3.80 %) vs prev 3.70 %, PPI mm decreased to 0.2 % (fcast 0.50 %) vs prev 0.30 %
• USD/ZAR is currently trading at 13.0419, with immediate resistance at 13.1276 (Day's high Aug 27) ahead of 13.2350 (Daily High Aug 25)
• Supports on the downside are seen at 12.9918 (10 DMA), breaks below could see test of 12.9824 (Daily Low Aug 25)

Recommendation: Good to sell rallies at 13.0730, SL: 13.1280, TP1: 12.9950, TP2: 12.9900 

Resistance Levels:

R1: 13.1276 (Day's high Aug 27)

R2: 13.2350 (Daily High Aug 25)

R3: 13.2423 (Daily Tenkan-Sen)

Support Levels:

S1: 12.9918 (10 DMA)

S2: 12.9824 (Daily Low Aug 25)

S3: 12.9655 (Daily Low Aug 24)