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FxWirePro: USD/ZAR downside pressure builds, key support level in focus

• USD/ZAR dipped on Tuesday    after U.S. consumer ‌inflation slowed more than expected in June, ruling out an interest rate increase from ​the Federal Reserve this year.

• U.S. inflation slowed more than expected in June as lower energy prices eased price pressures, but markets continued to expect a Federal Reserve rate hike this year amid renewed Middle East tensions.

• The data showed that the consumer price index rose 3.5% in June from a year earlier, below  economists' forecast of 3.8%.

• Like other risk-sensitive ‌currencies, ⁠the rand often takes cues from global drivers such as U.S. policy in addition to domestic data.

• Immediate resistance is located at 16.480 (50%fib) any close above will push the pair towards 16.598(Higher BB).

• Strong support is seen at 16.303(Daily low) and break below could take the pair towards 16.138(38.2%fib).

Recommendation: Good to sell  around 16.400 with stop loss of 16.550 and target price of 16.200

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