FxWirePro: USD/ZAR firms ahead of Fed interest rate decision

• USD/ZAR strengthened  on Wednesday as rand weakened ahead  U.S. Federal Reserve's policy decision  .

• The ​Fed's policy decision is due at 1800 GMT, while Warsh's ​comments are scheduled for 1830 GMT.

•Markets see a 68% chance the Fed will keep rates unchanged and a 32% chance of a 25-basis-point hike, while a 77% probability of a September rate increase is priced in, according to the FedWatch tool.

•South African Reserve Bank data on ​Wednesday showed M3 money supply growth slowed to 9.31% in June from 9.59% ‌in ⁠May, while private-sector credit growth eased to 7.80% from 8.57%.

• Investors also monitored renewed Middle East tensions after the U.S. and Saudi Arabia launched strikes on Iran-backed groups in Iraq, lifting oil prices.

•Like other risk-sensitive currencies, the rand often takes its cues from global factors, particularly U.S. ​monetary policy, alongside domestic economic data.

• Immediate resistance is located at 16.907(38.2%fib) any close above will push the pair towards 16.722(Higher BB).

• Strong support is seen at 16.668(50%fib) and break below could take the pair towards 16.450(SMA 20).

Recommendation: Good to buy  around 16.700 with stop loss of 16.500 and target price of 17.000