• USD/ZAR initially dipped but recovered ground as investors reassessed the implications of a moderate U.S. inflation rise.
• The US consumer Price Index rose 0.3% in June, following a 0.1% gain in May—its strongest monthly increase since January.
• Year-over-year inflation accelerated to 2.7% in June, compared with 2.4% the previous month.
• The latest figures did little to shift market expectations, as traders maintained a roughly 60% chance of a Fed cut in September.
• At GMT 15:14,the dollar was up 0.04 % at 17.877 against South African rand.
• Immediate resistance is located at 18.094(50%fib), any close above will push the pair towards 18.163(Higher BB).
• Strong support is seen at 17.828(38.2%fib) and break below could take the pair towards 17.503(23.6%fib)
Recommendation: Good to buy around 17.830 with stop loss of 17.600 and target price of 18.080
