FxWirePro: USD/ZAR bearish again as upside bias reverses

• USD/ZAR dipped on Friday as the currency pair came under pressure after data showed U.S. headline CPI matched market expectations.

• The Consumer Price Index rose 0.4% last month after increasing 0.1% in July, the Labor Department's Bureau of Labor Statistics said.

• Gasoline prices climbed 3.9% following two straight monthly declines, contributing more than a third of the CPI's monthly increase. Other motor fuels, including diesel, surged 9.6%.

• Oil prices fell on Friday, but both major benchmarks were on track to end the week above $100 a barrel for the first time since mid-May, as intensifying attacks along key Middle East shipping routes fueled fears of prolonged supply disruptions.

• The rand often takes cues from global factors such as U.S. economic data and monetary policy.

• Immediate resistance is located at 16.070(SMA20), any close above will push the pair towards 16.160(38.2%fib).

• Strong support is seen at 15.836(Lower BB) and break below could take the pair towards 15.783(23.6%fib).

Recommendation: Good to sell around 16.200 with stop loss of 16.300 and target price of 16.000