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

• The USD/ZAR traded in tight ranged on Tuesday after data showed that the country's foreign reserves increased last month.

• South Africa's net foreign reserves climbed to $67.87 billion at the end of September, up from $65.90 billion in August.

• Economists projected a more modest increase in the international liquidity position, to $67.5 billion.

•Despite uncertainty over the renewal of AGOA, the U.S.’s key trade pact with Africa, the currency has held firm.

 •At GMT 11:46, the pair was trading up 0.24 percent  at 17.204  

• Immediate resistance is located at 17.297  (SMA 20), any close above will push the pair towards 17.480(38.2%fib).

• Strong support is seen at 17.130 (23.6%fib) and break below could take the pair towards 17.079(Lower BB)

Recommendation: Good to sell around 17.300 with stop loss of 17.800 and target price of 17.100