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FxWirePro: USD/ZAR outlook weaker on renewed downside pressure

• USD/ZAR slipped lower on Wednesday as South African rand firmed as investors continued to pile into precious metals. • Gold broke above $4,500 an ounce for the first time on Wednesday while silver and platinum also mar…

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FxWirePro: USD/ZAR outlook weaker on renewed downside pressure
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•   USD/ZAR slipped lower on Wednesday as South African rand firmed as investors continued to pile into precious metals.

• Gold broke above $4,500 an ounce for the first time on Wednesday while silver and platinum also marked new record highs,

• Silver   hit an all-time high of $72.70 and was last up 0.9% at $72.09 an ounce, while platinum   peaked at $2,377.50 before paring gains to stand 0.3% higher at $2,282.70.

• Copper advanced for a sixth straight session to an all-time high close to $12,300 on Wednesday.

• The rand is set to gain over 12% against the dollar this year, supported by stronger South African fiscal performance, contained inflation, and rising gold and platinum prices, key exports.

• Trade has been thinner than usual this week, with many investors away from their desks for end-of-year holidays.

• Immediate resistance is located at 16.697 (Daily high), any close above will push the pair towards 16.777(38.2%fib).

• Strong support is seen at 16.574 (23.6%fib) and break below could take the pair towards 16.495 (Lower BB)

Recommendation: Good to sell around 16.650 with stop loss of 16.900 and target price of 16.400

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