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FxWirePro: USD/ZAR attracts selling interest, could be on verge of a bigger drop

• 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

  • Market Data
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