FxWirePro: USD/ZAR down trend loses steam, remains on bearish path

•   USD/ZAR edged higher on Tuesday   as rand weakened after data showed South Africa's economy slowed in third quarter.

•   South Africa's economic growth slowed in the third quarter as anticipated, but a rebound in fixed investment for the first time in a year offered a positive signal for future momentum..

•  South Africa’s economy expanded 0.5% q/q on a seasonally adjusted basis, matching the median  poll forecast but slowing from the revised 0.9% growth in Q2.

• The economy has struggled to build momentum over the past decade, with annual gross domestic product (GDP) growth averaging less than 1%.

• In year-on-year terms, GDP expanded 2.1% in the third quarter, better than economists' forecasts for 1.8% growth.

• Immediate resistance is located at 17.134  (38.2%fib), any close above will push the pair towards 17.186(SMA 20).

• Strong support is seen at 16.964 (23.6%fib) and break below could take the pair towards 16.922 (Lower BB)

Recommendation: Good to sell around 17.200 with stop loss of 17.300 and target price of 17.000