• The USD/ZAR slipped lower on Thursday as dollar weakened as weak U.S. economic data revived fears of slow growth and high inflation.
• Wednesday's ADP National Employment Report revealed U.S. private payrolls increased far less than expected in May.
• Soft U.S. data showing signs of a cooling labor market sparked dollar selling and raised expectations of Federal Reserve rate cuts later this year.
• Investors are now awaiting Friday’s monthly payrolls report to assess the health of the labor market, following ADP data showing a smaller-than-expected rise in U.S. private payrolls for May.
•At GMT 16:05, the pair was trading down 0.75 percent at 17.859
• Immediate resistance is located at 17.588(Daily high), any close above will push the pair towards 18.033(38.2%fib).
• Strong support is seen at 17.729(23.6%fib) and break below could take the pair towards 17.569(Lower BB)
Recommendation: Good to sell around 18.000 with stop loss of 18.200 and target price of 17.500
