• USD/ZAR slipped lower on Wednesday as South African rand strengthened after the finance minister announced a lower inflation target.
• Godongwana said the inflation target would immediately change to 3% with a 1 percentage point tolerance band either side from a range of 3-6% previously.
• Financial markets had anticipated positive developments in Godongwana’s budget review, supported by signs of robust revenue collection this year despite sluggish economic growth.
• At GMT 15:20,the dollar was down 0.42% at 17.763 against South African rand .
• Immediate resistance is located at 17.170 (Daily high), any close above will push the pair towards 17.296(38.2%fib).
• Strong support is seen at 17.0666 (23.6%fib) and break below could take the pair towards 16.968(Lower BB)
Recommendation: Good to sell around 17.200 with stop loss of 17.400 and target price of 17.000
