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

• USD/ZAR edge higher on Tuesday as investors digested South Africa’s  second-quarter gross domestic product numbers.

• Statistics South Africa reported that the country’s economy expanded by 0.8% on a quarter-on-quarter basis, slightly surpassing economists’ expectations of a 0.5% rise.

• Africa’s most industrialized economy sees two-year high growth, but still insufficient to tackle poverty and inequality.

• Investor attention now turns to key economic releases on Thursday, including mining production, manufacturing output, and the current account balance.

• At GMT 15:10,the dollar   was up 0.17 % at 17.523 against South African rand.

• Immediate resistance is located at 17.599(SMA 20), any close above will push the pair towards 17.812(38.2%fib).

• Strong support is seen at 17.417(23.6%fib) and break below could take the pair towards 17.381(Lower BB)

Recommendation: Good to sell  around 17.600 with stop loss of 17.800 and target price of 17.300