FxWirePro: USD/ZAR drops below 17.100 level, heads deeper into bear territory

•   USD/ZAR edged lower on Wednesday as   greenback weakened   following weaker U.S. economic data and growing expectations of a more dovish Federal Reserve.

•U.S. private payrolls unexpectedly declined in November, the ADP employment report showed on Wednesday.

•Private employment decreased by 32,000 jobs last month after an upwardly revised 47,000 increase in October.

•   Federal Reserve Governor Christopher Waller stated last week that the labor market’s weakness supports an additional 25-basis-point rate cut in December, while Kevin Hassett emerged as the leading candidate for the Fed’s top position.

•Domestically, South Africa’s private sector activity shrank for the second straight month in November, led by continued declines in output and new business volumes, according to an S&P Global survey released on Wednesday.

• The Purchasing Managers’ Index (PMI) rose slightly to 49.0 in November from 48.8 in October, but stayed below the 50.0 mark that distinguishes expansion from contraction.

• 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 17.168 (SMA 20), any close above will push the pair towards 17.201(38.2%fib).

• Strong support is seen at 16.961 (23.6%fib) and break below could take the pair towards 16.918 (Lower BB)

Recommendation: Good to sell around 17.100 with stop loss of 17.200 and target price of 16.900