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

• USD/ZAR dipped on Tuesday as rising precious metal prices lifted the South African rand across the board.

•Soaring prices of precious metals have helped to propel the rand to its strongest in more than three years.

•   On the data front, South Africa recorded a budget deficit of 14.99 billion rand ($901.40 million) in November, according to National Treasury data released on Tuesday.

The latest figure represents a significant widening compared to the deficit of 4.46 billion rand reported in November 2024..

 • South Africa's National Treasury is scheduled to publish November budget balance data  which should provide insight into the health of Africa's most industrialised economy.

• Immediate resistance is located at 16.682(Daily high), any close above will push the pair towards 16.770(38.2%fib).

• Strong support is seen at 16.570(23.6%fib) and break below could take the pair towards 16.506(Lower BB)

Recommendation: Good to    sell  around 16.590 with stop loss of 16.900 and target price of 16.350