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FxWirePro: USD/ZAR recovers some ground but outlook still bearish

• USD/ZAR strengthened  on Wednesday as  South Africa's rand was pressured by a rebounding U.S. dollar and a contraction in  South Africa's Purchasing Managers' Index.

•The S&P PMI fell to 47.7 from 49.0 in November as demand waned and firms reduced purchases and inventories.

•The rand, like other risk-sensitive currencies, reacts to global factors, monetary policy changes in major economies and economic data.

•The rand ended 2025 nearly 13% stronger against the U.S. dollar, its biggest annual gain in 16 years as the greenback weakened broadly.

• Immediate resistance is located at 16.583  (38.2%fib), any close above will push the pair towards 16.678 (SMA 20).

• Strong support is seen at 16.312(23.6%fib) and break below could take the pair towards 16.248(Lower BB)

Recommendation: Good to sell around 16.500 with stop loss of 16.900 and target price of 16.200

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