FxWirePro: USD/ZAR gains some upside momentum but still bearish

• USD/ZAR edged higher on Thursday as the rand weakened following disappointing local mining output data, which underscored ongoing concerns about South Africa’s economic performance.

•  South Africa's mining output fell 7.7% year on the year in April, the sixth consecutive monthly decline, Statistics South Africa data showed on Thursday.

• Meanwhile, U.S. producer prices rose less than expected in May, fueling expectations that the Federal Reserve might accelerate its rate-cutting cycle.

• The South African rand, like other risk-sensitive currencies, is driven by both global factors such as U.S. monetary policy ,economic data and local developments.

 •At GMT 17:16, the pair was trading up 0.29 percent  at 17.792

• Immediate resistance is located at 17.919(Daily high), any close above will push the pair towards 18.065(38.2%fib).

• Strong support is seen at 17.636(23.6%fib) and break below could take the pair towards 17.578(Lower BB)

Recommendation: Good to sell  around 17.900 with stop loss of 18.100 and target price of 17.500