• USD/ZAR edged higher on Friday as the greenback recovered from the prior day’s decline.
• The pair had dipped after a surge in U.S. jobless claims and a modest tick up in inflation kept investors zeroed in on likely Federal Reserve interest rate cuts next week and beyond.
•Looking ahead, investor will focus on the release of domestic consumer price inflation data and a rate-setting meeting next week.
• Traders will watch Wednesday’s CPI data closely, while Thursday’s South African rate-setting meeting may shed light on inflation and the health of Africa’s most industrialized economy.
• Immediate resistance is located at 17.576(SMA 20), any close above will push the pair towards 17.666(38.2%fib).
• Strong support is seen at 17.335(23.6%fib) and break below could take the pair towards 17.244(Lower BB)
Recommendation: Good to sell around 17.360 with stop loss of 17.500 and target price of 17.200
