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FxWirePro: USD/ZAR neutral in the near-term, scope for downward resumption

• USD/ZAR traded flat    on Tuesday  as  investors awaited fresh domestic catalysts for  potential policy signals from South Africa .

• A key business cycle indicator measuring the outlook for South Africa’s economy rose 0.9% month-on-month in July, central bank data showed on Tuesday, though the release had little impact on the rand. 

•  Other domestic data due this week include the producer price index   and a central bank report on second-quarter economic trends

• Immediate resistance is located at 17.489  (SMA 20), any close above will push the pair towards 17.534 (38.2%fib).

• Strong support is seen at 17.292(23.6%fib) and break below could take the pair towards 17.189 (Lower BB).

Recommendation: Good to sell around 17.330 with stop loss of 17.600 and target price of 17.200

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