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FxWirePro: USD/ZAR extends drop, faces 23.6% fib support

• The USD/ZAR slipped lower on Thursday as broad weakness in the U.S. dollar boosted risk sensitive rand

• The dollar weakness extended against major currencies on Friday after downbeat US economic data.

•US PPI for final demand fell 0.5% in April after a revised flat reading in March, according to the Labor Department.

•  In a separate report,  US retail sales rose 0.1% in April, following a revised 1.7% gain in March, beating expectations for no change.

• Labor Department data showed weekly jobless claims remained at 229K, as expected, while job openings continued to shrink.

• Immediate resistance is located at 18.374(38.2%fib), any close above will push the pair towards 18.472(May 13th high).

• Strong support is seen at 17.995(23.6%fib) and break below could take the pair towards 17.887(Lower BB)

Recommendation: Good to sell around 18.100 with stop loss of 18.400 and target price of 17.800

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