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FxWirePro: USD/ZAR continues to decline, downside risks persist

• The USD/ZAR fell on Thursday as South Africa's rand extended its recent gains, supported by a rise in overall risk sentiment.

• In terms of data, South Africa recorded foreign direct investment inflows of 16.6 billion rand in the second quarter of 2024, down from 24.4 billion rand in the first quarter.

• Additionally, the statistics agency reported that South Africa's producer inflation dropped to 2.8% year-on-year in August, down from 4.2% in July.

 •At GMT 16:32, the pair was trading down 0.49 percent  at 17.174  

• Immediate resistance is located at 17.358  (38.2%fib), any close above will push the pair towards 17.468(Sep 23rd high).

• Strong support is seen at 17.145 (23.6%fib) and break below could take the pair towards 17.035(Lower BB)

Recommendation: Good to sell around 17.190 with stop loss of 17.280 and target price of 17.080

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