FxWirePro: USD/ZAR edges higher on profit-taking but setup is negative

• USD/ZAR edges higher on Monday  as South African rand softened as investors booked profits from a precious metals rally.

• Precious metals retreated on Monday, with silver pulling back after breaching $80 an ounce earlier in the session and gold easing from near record highs as investors took profits and safe-haven demand softened.

• South Africa’s risk-sensitive rand is on track to gain more than 12% against the dollar this year, supported by improved fiscal performance, success in curbing inflation, and a surge in precious-metal prices such as gold and platinum.

• At 17:23 GMT, the dollar was trading at 16.967 up 0.32 % against the rand .

• Immediate resistance is located at 16.852 (SMA 20), any close above will push the pair towards 17.034(38.2%fib).

• Strong support is seen at 16.598 (23.6%fib) and break below could take the pair towards 16.555 (Lower BB).

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