FxWirePro: USD/ZAR consolidating around 16.995, room for further gains

• USD/ZAR firmed  on Tuesday as a firm U.S. dollar outweighed data showing an expansion in economic activity signalled by the central bank's leading business cycle indicator..

• The dollar firmed as investors grew sceptical of a swift end to the Middle East conflict, partially reversing the optimism-driven moves seen in the previous session.

• South Africa's composite leading business cycle indicator rose 0.4% month-on-month in January, central bank data showed on Tuesday.

• Investors now turn to Thursday's central bank rate decision, when economists polled by Reuters expect the bank to keep its main lending rate  steady at 6.75%.

• Immediate resistance is located at 17.177(50%fib), any close above will push the pair towards 17.418(Higher BB).

• Strong support is seen at 16.801(38.2%fib) and break below could take the pair towards 16.520(SMA 20)

Recommendation: Good to buy around 16.900 with stop loss of 16.600 and target price of 17.200