• USD/ZAR rose on Wednesday as the U.S. dollar advanced following stronger-than-expected U.S. GDP data
• U.S. economic growth rebounded in the second quarter, beating expectations, with GDP rising at a 3.0% annualized rate, according to the Commerce Department’s Bureau of Economic Analysis.
•Separate data showed private payrolls ADP rose by 104,000 in July, surpassing forecasts of 75,000, ahead of Friday’s closely watched nonfarm payrolls report.
• Following the data, traders scaled back expectations for a September Fed rate cut, with the probability slipping to 57% from 64%, according to CME’s FedWatch tool.
• At GMT 15:11 ,the dollar was up 0.50 % at 17.954 against South African rand.
• Immediate resistance is located at 18.000 (Psychological level), any close above will push the pair towards 18.133(50%fib).
• Strong support is seen at 17.837 (38.2%fib) and break below could take the pair towards 17.744(SMA20)
Recommendation: Good to buy around 17.900 with stop loss of 17.400 and target price of 18.300
