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

•  USD/ZAR slipped lower on Friday as the rand strengthened after release of South African economic data.

•   Data showed M3 money supply growth rose to 7.52% last month, up from 6.07% in September, while private sector credit expanded at a faster pace of 7.26% in October compared with 6.03% the month before.

• South Africa’s trade balance swung to a surplus of 15.58 billion rand ($908.94 million) in October, according to revenue service data released on Friday.  

•  Meanehile, Figures published by the National Treasury showed South Africa posted a budget shortfall of 35.83 billion rand ($2.09 billion) in October.

• Next week, investors will focus on local data, including GDP figures, the manufacturing PMI, and third-quarter current account results, for insights into the health of Africa’s most industrialized economy.

• Immediate resistance is located at 17.227  (38.2%fib), any close above will push the pair towards 17.434(50%fib)

• Strong support is seen at 16.966(23.6%fib) and break below could take the pair towards 16.916(Lower BB)

Recommendation: Good to sell around 17.150 with stop loss of 17.300 and target price of 16.900