FxWirePro: USD/ZAR rebounds, critical resistance lies ahead

• USD/ZAR rebounded strongly on Friday  as greenback was buoyed by upbeat U.S. economic data

• The U.S. PCE price index, the Federal Reserve's preferred measure of inflation, increased by 0.2% in July, according to data released by the Commerce Department on Friday.

• Friday's PCE report is the last before the Fed's September meeting and follows Chair Jerome Powell's comments last week expressing support for an imminent policy adjustment.

•Money markets are confidently pricing the Fed's first 25 basis point cut of this cycle at its September meeting, with a 33% chance of a jumbo 50 bp reduction.

• Immediate resistance is located at 17.9250  (50%fib), any close above will push the pair towards 18.000 (Psychologcal level).

• Strong support is seen at 17.792 (38.2%fib) and break below could take the pair towards 17.6100 (23.6%fib).

Recommendation: Good to buy around 17.7500 with stop loss of 17.6100 and target price of 17.940