• The USD/ZAR initially dipped Monday but recovered ground as markets reacted to U.S. President-elect Donald Trump's nomination of investor Scott Bessent for the post of Treasury secretary.
• Bessent has also been a vocal advocate for a strong dollar and has supported tariffs, implying that any pullback in the currency could be short-lived.
• Investor attention will shift towards several key South African economic indicators set for release this week, including a business cycle indicator, producer inflation data, as well as trade and budget balance figures.
•At GMT 11:22, the pair was trading up 0.30 percent at 18.046
• Immediate resistance is located at 18.093 (38.2%fib), any close above will push the pair towards 18.897 (Nov 18th high).
• Strong support is seen at 17.891 (50%fib) and break below could take the pair towards 17.833 (50%fib)
Recommendation: Good to buy around 18.000 with stop loss of 17.900 and target price of 18.200
