FxWirePro: USD/ZAR gains on dollar recovery

• USD/ZAR firmed on Monday as the greenback regained ground after last week’s drop

• On Friday, the dollar came under pressure after Fed Chair Jerome Powell signaled a more employment-focused approach to monetary policy.

• The Fed chair indicated that preemptive policy action might be necessary if labor market conditions threaten inflation.

• U.S. rate futures currently price in an 80% chance of a 25-basis-point cut in September, with markets expecting a total easing of 52 basis points by the December FOMC meeting.

• Despite this dovish tilt, traders continue to focus on key upcoming U.S. economic data, notably the core PCE Price Index on August 29 and the August payroll report on September 5, which could influence.

• At GMT 16:15,the dollar   was up 0.85% at 17.597against South African rand.

• Immediate resistance is located at 17.670(38.2%fib), any close above will push the pair towards 17.725(SMA 20).

• Strong support is seen at 17.414(23.6%fib) and break below could take the pair towards 17.261(Lower BB)

Recommendation: Good to buy  around 17.600 with stop loss of 17.500 and target price of 18.000