FxWirePro: USD/ZAR consolidating around 16.670, room for further gains

• The USD/ZAR edged higher on Tuesday as market participants monitored the intensifying conflict in the Middle East and awaited the U.S. Federal Reserve's upcoming policy decision.

• International oil prices climbed by more than 2% on the day, reflecting a strong rebound in global crude markets.
 

• The Fed is widely expected to hold rates for a second straight meeting when it announces its policy decision on Wednesday.

•Domestically-focussed investors will also be on the lookout for February inflation data (ZACPIY=ECI) and January retail sales numbers   on Wednesday.

• Like other risk-sensitive currencies, the rand often takes cues from global drivers like U.S. policy, in addition to domestic economic data.

• Immediate resistance is located at 16.715(38.2%fib), any close above will push the pair towards 16.956(23.6%fib).

• Strong support is seen at 16.501(50%fib) and break below could take the pair towards 16.308(61.8%fib)

Recommendation: Good to buy around 16.600 with stop loss of 16.200 and target price of 16.900