FxWirePro: USD/ZAR rebounds strongly, upside pressure builds

• The USD/ZAR rose  higher on Thursday   as rand was pressured by a firmer dollar and easing prices of key precious metals, particularly gold and platinum.

• The South African rand has lost around 4% since the beginning of the week, causing USD-ZAR to move significantly away from the 16-mark.

• Commodity prices have been acting as a tailwind, as key South African export gold which is rising on global markets on the back of safe haven demand.

• Rising oil prices could reignite inflationary pressures and prompt the South African Reserve Bank to adopt a more conservative stance.

• Immediate resistance is located at 16.770(38.2%fib), any close above will push the pair towards 17.130(23.6%fib).

• Strong support is seen at 16.457(50%fib) and break below could take the pair towards 16.294(Daily low)

Recommendation: Good to buy around 16.700 with stop loss of 16.500 and target price of 16.900