FxWirePro: USD/ZAR neutral in the near-term, scope for downward resumption

• USD/ZAR edged higher on Monday but gains were limited as market participants awaited  South African Reserve Bank interest rate decision   .

• The South African Reserve Bank (SARB) is set to announce its monetary policy decision on Thursday, following a pause in its rate-cutting cycle in March due to concerns over President Trump’s global trade tensions and domestic budget challenges.

• There was speculation that the finance minister might announce a lower inflation target in last week’s budget, but the lack of such a move could give the SARB’s Monetary Policy Committee more room to ease policy..

• On the data front, this week’s key economic releases include the leading business cycle indicator on Tuesday, producer inflation on Thursday, and credit, trade, and budget figures on Friday.

• Immediate resistance is located at 18.027 (38.2%fib), any close above will push the pair towards 18.104(May 20th high).

• Strong support is seen at 17.790 (23.6%fib) and break below could take the pair towards 17.646 (Lower BB).

Recommendation: Good to sell  around 17.850 with stop loss of 18.000 and target price of 16.650