• USD/ZAR rose above 17.900 level on Friday as rand slipped after the central bank released its quarterly bulletin.
• The South African Reserve Bank (SARB) reported foreign direct investment outflows of 3.2 billion rand in Q3, a sharp decline from 16.6 billion rand inflows in Q2.
• The SARB attributed the outflows to domestic subsidiaries of multinational companies repaying loans to their parent companies.
• At GMT 14:24 the pair was trading up 0.67 percent at 17.901.
• Immediate resistance is located at 17.836 (38.2%fib), any close above will push the pair towards 17.902(Dec 11th high).
• Strong support is seen at 17.945(11SMA) and break below could take the pair towards 18.903 (23.6%fib).
Recommendation: Good to buy around 17.880 with stop loss of 17.700 and target price of 18.000
