• 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
