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FxWirePro: USD/ZAR bears maintain upper hand

• USD/ZAR edged lower on Wednesday as the South African rand strengthened after domestic data showed an improvement in the leading business cycle indicator..

• South Africa’s leading business cycle indicator rose 0.4% month-on-month in October, according to data released by the South African Reserve Bank.

• Separate data showed that November consumer inflation rose 3.5% year-on-year, reinforcing expectations that the central bank may deliver further interest rate cuts next year...

• Markets now await November’s U.S. Consumer Price Index due on Thursday, followed by the Personal Consumption Expenditures (PCE) price index on Friday.

• Immediate resistance is located at 16.788(38.2%fib), any close above will push the pair towards 16.882(38.2%fib).

• Strong support is seen at 16.694 (23.6%fib) and break below could take the pair towards 16.595(Lower BB)

Recommendation: Good to   sell 16.800 with stop loss of 17.000 and target price of 16.600

 

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