FxWirePro: USD/ZAR reclaims higher ground, bulls eye 17.500 level

• USD/ZAR rose  on Thursday    as greenback was boosted after   comments from Fed Chair Jerome Powell.

• Fed Chair Jerome Powell said policymakers are finding it difficult to reach a consensus on the future path of monetary policy and warned that markets should not assume another rate cut in December.

• The Fed cut interest rates by 25 basis points as expected and announced plans to conclude its balance sheet drawdown on December 1..

• Market expectations for another quarter-point Fed rate cut in December have fallen to about 68%, down from nearly full pricing before Wednesday’s decision...

• Meanwhile, South Africa’s producer inflation rose to 2.3% year-on-year in September from 2.1% in August, according to data released by the statistics agency on Thursday.

•The Producer Price Index decreased by 0.1% month on month in September, Statistics South Africa said.

• Immediate resistance is located at 17.365  (38.2%fib), any close above will push the pair towards 17.512 (Higher BB).

• Strong support is seen at 17.271 (SMA 20) and break below could take the pair towards 17.084 (23.6%fib).

Recommendation: Good to buy around 17.300 with stop loss of 17.100 and target price of 17.500