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FxWirePro: USD/ZAR bulls gear up for next leg higher, eyes 18.200 level

• USD/ZAR strengthened on Tuesday as the South African rand weakened against a stronger dollar as investors focused on the Federal Reserve's interest rate decision.

• The Fed is expected to cut rates by 25 basis points on Wednesday, with focus on its outlook for the year ahead.

• The outcome of the U.S. Federal Reserve meeting, ending Wednesday, is unlikely to be a surprise and is not expected to cause significant market volatility.

• At GMT 10:30, the pair was trading up 1.02 percent  at 18.041.

• Immediate resistance is located at 18.055  (38.2%fib), any close above will push the pair towards 18.170(Dec 5th high).

• Strong support is seen at 17.875 (50%fib) and break below could take the pair towards 17.671(61.8%fib).

Recommendation: Good to buy around 18.000 with stop loss of 17.800 and target price of 18.200

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