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

• USD/ZAR dipped on Monday as firmer gold prices supported the rand, while investors awaited key domestic economic data.

•Gold rose   as a weaker dollar, rate-cut expectations and safe-haven demand from geopolitical tensions boosted prices.

• As a major producer of precious metals, South Africa typically benefits from firmer bullion prices, which tend to support export revenues and the local currency.

• Later in the week, investors will look to November consumer inflation data  and producer inflation figures.

•Meanwhile, the nonfarm payrolls reports for October and November are due on Tuesday, with the October release delayed earlier this quarter by the government shutdown.

• Immediate resistance is located at 16.884(Daily high), any close above will push the pair towards 17.057(38.2%fib).

• Strong support is seen at 16.765 (23.6%fib) and break below could take the pair towards 16.706(Lower BB)

Recommendation: Good to   sell 16.800 with stop loss of 17.000 and target price of 16.700