• USD/ZAR dipped on Thursday as investors digested South Africa’s rate cut and U.S. GDP data.
• USD The second estimate of U.S. GDP showed a 0.1% contraction in the first quarter of 2025, the Bureau of Economic Analysis reported on Thursday.
• South Africa's central bank lowered its main interest rate by 25 basis points to 7.25% on Thursday, following a second straight month of inflation falling below its target range..
• The central bank's Monetary Policy Committee (MPC) was divided on the rate decision, with five members supporting a 25 basis point cut and one member advocating for a deeper 50 basis point reduction.
•At GMT 14:24, the pair was trading down 0.55percent at 17.794
• Immediate resistance is located at 18.022 (38.2%fib), any close above will push the pair towards 18.234(50%fib).
• Strong support is seen at 17.734(23.6%fib) and break below could take the pair towards 17.638(Lower BB).
Recommendation: Good to sell around 17.900 with stop loss of 18.100 and target price of 17.600
