FxWirePro: USD/ZAR recovers some ground but bears are not done yet

• USD/ZAR edged higher on Wednesday as the dollar strengthened after U.S. PCE data   boosted expectations for a Federal Reserve rate hike.

• The Commerce Department said the Personal Consumption Expenditures Price Index increased 3.7% in the 12 months through July, unchanged from June and slightly above the 3.6% estimate of economists  .

• Investors await Fed Chair Kevin Warsh’s first Jackson Hole speech on Friday, though markets expect limited policy guidance..

• Markets also watched for a possible restart of oil flows through the Strait of Hormuz after Iran and Oman discussed a temporary navigation corridor and agreed to clear mines from the waterway.

• The rand, like other risk-sensitive currencies, tends to be driven by global factors, including U.S. economic data releases and policy developments.

• Immediate resistance is located at 16.000(Psychological level) any close above will push the pair towards 16.73(38.2%fib).

• Strong support is seen at 15.908 (23.6%fib) and break below could take the pair towards 15.783(Lower BB).

Recommendation: Good to sell around 16.000 with stop loss of 16.100 and target price of 15.900