FxWirePro: USD/ZAR edges higher but outlook still bearish

• USD/ZAR edged higher on Tuesday  as investors focused firmly on the central bank's impending interest rate decision later this week.

• Economists surveyed   anticipate that the South African Reserve Bank (SARB) will reduce its main interest rate by 25 basis points to 7.25% during its upcoming policy meeting on Thursday.

• The SARB had paused its rate-cutting cycle in March due to concerns over U.S. trade policies and domestic budget issues. However, with inflation remaining subdued and no changes to the inflation target in the recent budget, the central bank may find it appropriate to resume easing.

• On the data front, South Africa's composite leading business cycle indicator rose 1.1% month on month in March.

• Immediate resistance is located at 17.927 (SMA9), any close above will push the pair towards 18.093(50%fib).

• Strong support is seen at 17.810 (38.2%fib) and break below could take the pair towards 17.461(23.6%fib).

Recommendation: Good to sell  around 17.950 with stop loss of 18.100 and target price of 17.000