FxWirePro: USD/ZAR gaining momentum for a move towards 16.800 level

• The USD/ZAR edged higher on Monday  as stronger dollar and higher domestic fuel prices weighed on rand.

• South Africa's government said on Monday that the country's regulated petrol price ​would rise by as much as 12% this ​week and the wholesale diesel price by 10%, reflecting higher ‌global ⁠energy costs linked to the Iran conflict.

• Higher fuel prices are expected to drive overall inflation further above the central bank's 3% target   potentially prompting more interest-rate hikes

• Further weighing on ​the rand, ​data showed ⁠South Africa's private sector contracted in September at its fastest pace since December ​as new orders slumped and supply and ​fuel-related ⁠cost pressures intensified.

• Immediate resistance is located at 16.803  (38.2%fib), any close above will push the pair towards 16.867 (Higher BB).

• Strong support is seen at 16.482 (50%fib) and break below could take the pair towards 16.335(SMA 20)

Recommendation: Good to buy around 16.650 with stop loss of 16.400 and target price of 17.000