FxWirePro: USD/ZAR bears capitalize on dollar decline

• USD/ZAR dipped on Wednesday as dollar weakned after tame U.S. inflation data cemented expectations of interest rate cuts by the Federal Reserve next month .

• U.S. inflation data showed the consumer price index (CPI) rising slightly less than forecast in the year through July, suggesting President Donald Trump's import tariffs had yet to impact consumer prices..

• South Africa's retail sales grew 1.6% year-on-year in June 2025, slowing from a 4.3% increase in May.On a monthly basis, retail sales were flat, after increasing by 0.2% in the prior month.

• The rand, like other risk-sensitive currencies, often takes cues from global drivers such as U.S. policy and  economic data.

• At GMT 13:07,the dollar   was down 0.15% at 17.532 against South African rand.

• Immediate resistance is located at 17.719(38.2%fib), any close above will push the pair towards 17.556(SMA 20).

• Strong support is seen at 17.464(23.6%fib) and break below could take the pair towards 17.316 (Lower BB)

Recommendation: Good to buy  around 17.500 with stop loss of 17.400 and target price of 17.800