FxWirePro: USD/ZAR downside pressure builds, key support level in focus

• USD/ZAR slipped lower   on Thursday as South African rand firmed further against greenback after South Africa's central bank cut its main interest rate.

• The South African Reserve Bank (SARB) reduced its main lending rate to 8% from 8.25%, as forecasted by economists. This decision came a day after data revealed that headline inflation dipped just below 4.5%.

• The move comes after the Federal Reserve's first 50-basis-point rate reduction in over four years, occurring against a backdrop of a favourable inflation outlook.

• At 16:28 GMT, the rand was trading at 17.472 down 0.33% against the dollar, lowest level since 27th July 2023.

• Immediate resistance is located at 17.618 (38.2%fib), any close above will push the pair towards 17.677(Sep 17th high).

• Strong support is seen at 17.405  (23.6%fib) and break below could take the pair towards 17.362  (Lower BB).

Recommendation: Good to sell around 17.470 with stop loss of 17.510 and target price of 17.390