• USD/ZAR initially dipped on Thursday but recovered some ground as investors reacted positively to the strong U.S. economic data.
• U.S. GDP for the second quarter expanded at an annualized rate of 3%, driven by increased consumer spending, alleviating concerns about a potential economic slowdown in the United States.
• Investors are anticipating a 25-basis-point rate cut by the Federal Reserve next month. However, they will closely scrutinize the U.S. Personal Consumption Expenditure report, scheduled for release on Friday.
• Immediate resistance is located at 17.881 (38.2%fib), any close above will push the pair towards 18.000 (Psychologcal level).
• Strong support is seen at 17.623 (23.6%fib) and break below could take the pair towards 17.486 (Lower BB).
Recommendation: Good to buy around 17.720 with stop loss of 17.610 and target price of 17.950
