• USD/ZAR edged higher on Friday as but gains were limited in holiday thin trading condition.
• Trading has been largely technical and flow-driven, with participants reluctant to establish fresh positions in the absence of broader market participation,
• As long as key technical resistance continue to hold, USD/ZAR appear biased to the downside, although sustained follow-through may remain limited until full market participation returns after the holiday period.
• The rand is set to gain over 12% against the dollar this year, supported by stronger South African fiscal performance, contained inflation, and rising gold and platinum prices, key exports.
• Immediate resistance is located at 16.750 (38.2%fib), any close above will push the pair towards 16.853(50%fib).
• Strong support is seen at 16.616 (23.6%fib) and break below could take the pair towards 16.560 (Lower BB)
Recommendation: Good to sell around 16.700 with stop loss of 17.000 and target price of 16.400
