• USD/ZAR inched higher on Friday as traders awaited next week’s inflation data for clues on South Africa’s economic outlook and rate-cut path..
• Inflation slowed for the first time in three months in November to 3.5%, staying within the 1 percentage point tolerance band of the 3% target.
•The SARB cut rates by 25 bps to 6.75% at its last meeting, citing room to ease policy amid an improved inflation outlook.
• Like other risk-sensitive currencies, the rand often takes its cues from global drivers such as U.S. policy.
• Immediate resistance is located at 16.524 (SMA 20), any close above will push the pair towards 16.585(38.2%fib).
• Strong support is seen at 16.287(23.6%fib) and break below could take the pair towards 16.180(Lower BB)
Recommendation: Good to sell around 16.400 with stop loss of 16.600 and target price of 16.200
