• USD/ZAR edged higher on Tuesday as South African rand weakened as higher oil prices weighed on sentiment.
• The US dollar was steady against a basket of currencies, while oil prices rose for a second successive session amid lingering concern over Middle East supply disruption.
• Investors awaiting for domestic economic data for clues on the health of Africa's largest economy.
• Statistics South Africa is due to release formal sector employment data, excluding agriculture, at around 0930 GMT.
• Like other risk-sensitive currencies, the rand tends to take its cues from global developments, including U.S. economic data and policy signals..
• Immediate resistance is located at 16.510(Higher BB), any close above will push the pair towards 16.548(50%fib).
• Strong support is seen at 16.266(38.2%fib) and break below could take the pair towards 16.190(SMA 20).
Recommendation: Good to sell around 16.500 with stop loss of 16.700 and target price of 16.200
