FxWirePro: USD/ZAR hits one week low, scope for further downside

• USD/ZAR declined sharply on Friday as markets assessed the potential size of the rate cut anticipated in the world’s largest economy next week

• Markets are confident that the Fed will cut rates, but there is still uncertainty about whether it will be a 25-basis-point or 50-basis-point reduction.

• Next week, South Africa’s data calendar features August consumer inflation figures on September 18 and the South African Reserve Bank's (SARB) interest rate announcement on September 19.

•  At GMT 17:42, the pair was trading up 0.75% at 17.723, its lowest level since September 6th.

• Immediate resistance is located at 17.800 (Daily high), any close above will push the pair towards 17.861(38.2%fib).

• Strong support is seen at 17.702(23.6%fib) and break below could take the pair towards 17.596 (Lower BB).

Recommendation: Good to sell around 17.730 with stop loss of 18.000 and target price of 17.620