FxWirePro: USD/ZAR bulls loosen their grip a bit, dips to be bought

•   USD/ZAR dipped slightly on Wednesday as investors awaited new cues on both the global and domestic economic outlook.

•   S&P Global reported that South Africa’s private sector activity fell in October for the first time in seven months, with companies experiencing a renewed decline in output and new orders.

•  Domestically focused traders appeared unfazed by the news, as the index also showed that despite the slowdown, business sentiment stayed positive, with 34% of firms anticipating higher activity over the next 12 months...

• The local economic calendar is relatively light for the remainder of the week, with October’s foreign reserves data on Friday serving as the primary indicator of the economy’s health.

• At GMT 15:29,the dollar was up 0.95% at 17.470 against South African rand .

• Immediate resistance is located at 17.563  (50%fib), any close above will push the pair towards 17.783(Sep 5th high).

• Strong support is seen at 17.304 (SMA 20) and break below could take the pair towards 17.068 (23.6%fib)

Recommendation: Good to buy around 17.400 with stop loss of 17.200 and target price of 17.600