• 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
