FxWirePro: USD/ZAR bulls gain momentum heading into the weekend

• USD/ZAR edged higher on Thursday after data showed U.S. producer prices increased more than expected.

• The US producer price index (PPI) for final demand surged by 0.9% in July, following no change in June, according to data released Thursday by the Labor Department’s Bureau of Labor Statistics..  

• Over the 12 months through July, the US producer price index rose 3.3%, up from a 2.4% increase in June.

• The South African rand has risen over 1% in the past two days, supported by a weaker dollar after soft US inflation data.

• With no major local data releases left this week, the rand is expected to take its cue from global drivers.

• At GMT 11:57,the dollar   was up 0.70% at 17.639 against South African rand.

• Immediate resistance is located at 17.779(SMA 20), any close above will push the pair towards 17884(38.2%fib).

• Strong support is seen at 17.464(23.6%fib) and break below could take the pair towards 17.374(Lower BB)

Recommendation: Good to buy  around 17.600 with stop loss of 17.200 and target price of 18.000