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FxWirePro: USD/ZAR rebounds, critical resistance lies ahead

• USD/ZAR strengthened against dollar on Thursday as south African rand weakened  a day after a key U.S. inflation report boosted hopes of a less restrictive Federal Reserve policy this year.

• U.S. core inflation slowed last month, and headline prices were in line with expectations, increasing market bets on two Fed rate cuts by the end of 2025, starting in June.

• Like other risk-sensitive currencies, the rand often tracks global factors such as U.S. economic data when domestic influences are limited.

• At GMT 10:10 the pair was trading up 0.43 percent  at 18.551.

• Immediate resistance is located at 18.962(38.2%fib), any close above will push the pair towards 19.000(Psychological level).

• Strong support is seen at 18.702(38.2%fib) and break below could take the pair towards 18.603 (Dec 30th low).

Recommendation: Good to buy around  18.800 with stop loss of 18.500 and target price of 19.100

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