FxWirePro: USD/ZAR advances as strong dollar and higher oil prices pressure rand

• The USD/ZAR rose higher on Wednesday as South African rand extended its   losses  pressured ​by a stronger US dollar and higher ‌oil prices, which dampened appetite for risk-sensitive assets..

• The US dollar strengthened against a basket of currencies as investors awaited minutes from the Federal Reserve’s September meeting for clues on the outlook for interest rates.

• Oil prices rose, with Brent futures holding above $100 a barrel as ongoing Middle East supply risks and a storm threatening oil-producing regions in the US supported prices.
 

• South Africa’s central bank said on Tuesday that the risk of second-round inflation effects had increased as oil prices remained elevated for longer, while El Niño added uncertainty to the outlook.

• Immediate resistance is located at 16.694  (38.2%fib), any close above will push the pair towards 16.795(Higher BB).

• Strong support is seen at 16.446 (50%fib) and break below could take the pair towards 16.379(SMA 20)

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