• The USD/ZAR rose higher on Thursday as rand was pressured by a firmer dollar and easing prices of key precious metals, particularly gold and platinum.
• The South African rand has lost around 4% since the beginning of the week, causing USD-ZAR to move significantly away from the 16-mark.
• Commodity prices have been acting as a tailwind, as key South African export gold which is rising on global markets on the back of safe haven demand.
• Rising oil prices could reignite inflationary pressures and prompt the South African Reserve Bank to adopt a more conservative stance.
• Immediate resistance is located at 16.770(38.2%fib), any close above will push the pair towards 17.130(23.6%fib).
• Strong support is seen at 16.457(50%fib) and break below could take the pair towards 16.294(Daily low)
Recommendation: Good to buy around 16.700 with stop loss of 16.500 and target price of 16.900
