FxWirePro: USD/ZAR poised for further gains to revisit a key fibonacci level

• The USD/ZAR extended gains   on Friday as dollar firmed on uncertainty over further U.S. rate cuts following the Federal Reserve's more conservative positioning on interest rates.

• On Wednesday, the U.S. central bank cut interest rates by a quarter of a percentage point for the second time this year, taking the benchmark overnight rate to a target range of 3.75%–4.00%.

• According to the CME FedWatch tool, markets now see a 65% chance of a December rate cut, down from over 90% earlier in the week.

 • Data from the revenue service showed South Africa posted a trade surplus of 21.76 billion rand ($1.26 billion) in September, exceeding expectations of a 12.50 billion rand surplus.

• Like other risk-sensitive currencies, the rand often takes cues from global drivers such as U.S. policy and economic data.

•Next week, local traders will focus on South Africa’s monthly PMI survey for insights into manufacturing sentiment, alongside October’s vehicle sales and foreign reserves data.

• Immediate resistance is located at 17.352(Higher BB), any close above will push the pair towards 17.594(38.2%fib).

• Strong support is seen at 17.274(SMA 20) and break below could take the pair towards 17.088(23.6%fib)

Recommendation: Good to buy  around 17.350 with stop loss of 17.200 and target price of 17.550