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FxWirePro: USD/ZAR dips below lower range, bearish bias increases

• USD/ZAR dipped on Wednesday as  weaker dollar upbeat  South African manufacturing PMI data boosted rand.

• Dollar weakened as a U.S. government shutdown unsettled markets and risked delaying data seen key to gauge the future path of Fed policy rates.

• South Africa’s seasonally adjusted Absa PMI rose to 52.2 in September from 49.5 in August, signaling renewed expansion in factory activity.

• This marked only the second time this year the PMI rose above 50, indicating a return to expansion in factory activity.

 At GMT 11:21, the pair was trading down 0.33 percent  at 17.186  .

• Immediate resistance is located at 17.283  (Daily high), any close above will push the pair towards 17.386 (38.2%fib).

• Strong support is seen at 17.165(23.6%fib) and break below could take the pair towards 17.108 (Lower BB).

Recommendation: Good to sell around 17.200 with stop loss of 17.300 and target price of 17.050

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