• USD/ZAR rebounded on Monday as the rand weakened as traders assessed Moody’s decision to keep South Africa’s sovereign credit rating unchanged.
• Moody’s kept South Africa’s sovereign credit rating at Ba2 and maintained a stable outlook, saying the decision reflected the country’s low growth potential..
• Investor attention will turn to retail sales data on Wednesday, followed by mining and manufacturing production figures on Thursday.
• Meanwhile, Global traders are closely watching the Federal Reserve’s interest rate decision for clues on the health of the world’s largest economy.
• Immediate resistance is located at 17.123(SMA20), any close above will push the pair towards 17.145(38.2%fib).
• Strong support is seen at 16.921 (23.6%fib) and break below could take the pair towards 16.866(Lower BB)
Recommendation: Good to buy around 17.050 with stop loss of 17.150 and target price of 16.900
