• USD/ZAR eased Monday as a softer dollar offset fading hopes of near-term Federal Reserve rate cuts amid elevated energy prices.
• Gold prices, a key South African export, were steady Monday after recovering from a near 1% drop, supported by a softer dollar.
• Later this week, local investors will focus on February inflation data and January retail sales figures.
• South African inflation expectations fell in Q1, with the five-year average forecast dropping to a record low, a survey showed Monday.
• Immediate resistance is located at 16.963(23.6%fib), any close above will push the pair towards 17.044(Higher BB).
• Strong support is seen at 16.626(38.2%fib) and break below could take the pair towards 16.391(61.8%fib)
Recommendation: Good to buy around 16.700 with stop loss of 16.400 and target price of 17.000
