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FxWirePro: USD/ZAR extends rally, potential for further bullish continuation

• USD/ZAR rose on Tuesday  as greenback continued to firm as  investors assessed the outlook for further U.S. rate cuts.

• The U.S. data calendar is relatively light this week, but investors will seek trading signals from Wednesday's release of the minutes from the Federal Reserve's September meeting.

• Markets are ascribing around a 90% chance of a 25-basis-point reduction in November, the CME FedWatch tool showed.

•Risk-sensitive currencies like the rand often takes cues from global drivers such as U.S. monetary policy.

• Immediate resistance is located at 17.583  (50%fib), any close above will push the pair towards 17.714(23.6%fib).

• Strong support is seen at 17.470(38.2%fib) and break below could take the pair towards 17.368 (50%fib).

Recommendation: Good to buy around 17.540 with stop loss of 17.450 and target price of 17.680

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