FxWirePro: USD/ZAR outlook weaker on renewed downside pressure

•   USD/ZAR slipped lower on Thursday  as   greenback weakened   as lacklustre data appeared to cement the case for a Federal Reserve rate cut next week.

• Data released on Wednesday showed an unexpected decline in U.S. private-sector jobs in November, based on the ADP employment report..

• Meanwhile, new orders for U.S. factory goods rose less than expected in September, as tariffs continued to weigh on manufacturers..

•Factory orders rose 0.2% in September after a downwardly revised 1.3% increase in August, the U.S. Census Bureau said on Thursday.

•Domestically, South Africa’s current-account deficit unexpectedly narrowed in the third quarter, driven by an improvement in the country’s terms of trade.

• The current-account deficit the broadest measure of trade in goods and services narrowed to 0.7% of gross domestic product, or 57 billion rand ($3.3 billion), in the three months through September.

• Immediate resistance is located at 17.082 (38.2%fib), any close above will push the pair towards 17.139(SMA 20).

• Strong support is seen at 16.949 (23.6%fib) and break below could take the pair towards 16.903 (Lower BB)

Recommendation: Good to sell around 17.000 with stop loss of 17.100 and target price of 16.800