FxWirePro: USD/ZAR bulls reclaim momentum in bid for 16.900 level

• USD/ZAR rose on Wednesday  as   South African rand fell as investors waited for the U.S. Federal Reserve's interest rate decision later in the day.

• The Fed is expected to hold its policy rate at 3.75%, as inflation easing remains uneven and economic data continues to show modest strength.

• The U.S. dollar strengthened against the basket of currencies as the Federal Reserve was expected to hold interest rates steady, amid growing concerns that elevated energy cost.

• On the geopolitical front, diplomatic efforts to end the Iran conflict have stalled, with U.S. President Donald Trump rejecting Tehran’s latest proposal, saying Iran is in a “state of collapse” and still working to resolve its leadership situation.

• The nearly two-month Middle East war has driven fuel prices sharply higher, pushed consumer confidence to a record low, and eliminated expectations for rate cuts.

• Immediate resistance is located at 16.816(38.2%fib), any close above will push the pair towards 16.948 (Higher BB).

• Strong support is seen at 16.504(50%fib) and break below could take the pair towards 16.310 (March 5th low).

Recommendation: Good to buy around 16.700 with stop loss of 16.400 and target price of 16.900