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FxWirePro: USD/ZAR gaining momentum for a move towards 17.600 level

•   USD/ZAR climbed sharply on Tuesday as the rand weakened, weighed down by stronger greenback and falling gold prices.

•   Gold prices declined as the dollar held strong and easing U.S.-China trade tensions dampened investor appetite for safety.

•  South Africa, a major precious metals producer, tends to gain when gold prices strengthen.

• Market participants are now awaiting Wednesday’s S&P business activity report and October’s foreign reserves data to gauge the outlook for Africa’s most industrialized economy.

• At GMT 15:29,the dollar was up 0.95% at 17.470 against South African rand .

• Immediate resistance is located at 17.519  (50%fib), any close above will push the pair towards 17.626(Sep 8th high).

• Strong support is seen at 17.344 (38.2%fib) and break below could take the pair towards 17.262(Daily low)

Recommendation: Good to buy around 17.450 with stop loss of 17.200 and target price of 17.600

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