FxWirePro: USD/ZAR consolidating around 16.550, room for further gains

• The USD/ZAR firmed on Friday  as traders look ahead to U.S. labour market data later in the day for indications on the Federal Reserve's policy trajectory.

• The U.S. nonfarm payrolls report for December is expected to cut through the data fog caused by the government shutdown and provide fresh signals on the Federal Reserve’s policy outlook.

•Swaps indicate a more than 86% chance of a hold at the Fed's January meeting, but price in a 38% probability of a 25-basis-point rate cut in March.

•On Thursday South Africa's central bank released data that showed that South Africa's net foreign reserves rose to $71.14 billion at the end of December from $70.02 billion in November.

 •At GMT 08:41, the pair was trading up  0.15 percent  at 16.551

• Immediate resistance is located at 16.579(38.2%fib), any close above will push the pair towards 16.641(SMA 20).

• Strong support is seen at 16.301 (23.6%fib) and break below could take the pair towards 16.270(Lower BB)

Recommendation: Good to buy around 16.500 with stop loss of 16.300 and target price of 16.750