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

• The USD/ZAR traded in tight range  on Tuesday as investors looked for local manufacturing data and China trade talk progress

•  Statistics South Africa will release April’s manufacturing output figuresat 11:00 GMT, also known as the Manufacturing Production Index—a key gauge of industrial activity.

• Meanwhile, U.S.-China trade talks were set to continue into a second day, offering investors a glimmer of hope that tensions between the world’s two largest economies could be easing.

• Like other risk-sensitive currencies, the South African rand is swayed by global influences including U.S. monetary policy and key economic data as well as local economic and political developments..

 •At GMT 09:13, the pair was trading down  0.03percent  at 17.709

• Immediate resistance is located at 17.853(June 5th high), any close above will push the pair towards 18.058(38.2%fib).

• Strong support is seen at 17.708(23.6%fib) and break below could take the pair towards 17.5530(Lower BB)

Recommendation: Good to sell  around 17.850 with stop loss of 18.200 and target price of 17.500