• USD/ZAR edged lower on Wednesday as the South African rand strengthened after domestic data showed an improvement in the leading business cycle indicator..
• South Africa’s leading business cycle indicator rose 0.4% month-on-month in October, according to data released by the South African Reserve Bank.
• Separate data showed that November consumer inflation rose 3.5% year-on-year, reinforcing expectations that the central bank may deliver further interest rate cuts next year...
• Markets now await November’s U.S. Consumer Price Index due on Thursday, followed by the Personal Consumption Expenditures (PCE) price index on Friday.
• Immediate resistance is located at 16.788(38.2%fib), any close above will push the pair towards 16.882(38.2%fib).
• Strong support is seen at 16.694 (23.6%fib) and break below could take the pair towards 16.595(Lower BB)
Recommendation: Good to sell 16.800 with stop loss of 17.000 and target price of 16.600
