• USD/ZAR strengthened on Thursday as the US dollar rose following a hotter-than-expected inflation report.
• A Labor Department report on Thursday showed producer prices rose 0.4% on a monthly basis in November, compared with estimates of a 0.2% rise as per economists polled
• South Africa's producer inflation was -0.1% year-on-year in November, improving from -0.7% in October, according to statistics agency data.
• At GMT 16:17 the pair was trading up 0.43 percent at 17.768.
• Immediate resistance is located at 17.836 (38.2%fib), any close above will push the pair towards 17.902(Dec 11th high).
• Strong support is seen at 17.629(50%fib) and break below could take the pair towards 17.416 (Psychological level)..
Recommendation: Good to buy around 17.760 with stop loss of 17.300 and target price of 18.000
