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

• USD/ZAR fell to a two-week low on Monday as markets prepared for a week filled with interest rate announcements and South Africa's inflation report.

• The U.S. Federal Reserve will announce its policy decision on Wednesday. Markets are betting the central bank of the world's biggest economy will cut rates but are divided on the size of the cut.

• On Wednesday, investors will focus on South Africa's August consumer inflation figures. In July, consumer inflation dropped to 4.6% year-on-year, slightly above the South African central bank's target of 4.5%.

•  At GMT 17:04, the pair was trading up 0.66% at 17.625, its lowest level since September 6th.

• Immediate resistance is located at 17.752(38.2%fib), any close above will push the pair towards 17.805(Sep 14th high).

• Strong support is seen at 17.598(23.6%fib) and break below could take the pair towards 17.565 (Lower BB).

Recommendation: Good to sell around 17.640 with stop loss of 17.750 and target price of 17.540