• USD/ZAR edged higher on Wednesday as traders prepared for upcoming South African economic data, which could offer fresh clues about the strength of the country’s economy..
•The currency came under pressure on Tuesday after data showed South Africa’s economy contracted in the second quarter for the first time in nearly two years, largely due to the impact of the Iran war.
• Investors will turn their attention to current account, mining and manufacturing figures due on Thursday.
•Investors also await U.S. producer price index data on Thursday and consumer price index figures on Friday.
• The rand often takes cues from global factors such as U.S. economic data, alongside domestic economic developments.
• Immediate resistance is located at 16.070(SMA20), any close above will push the pair towards 16.160(38.2%fib).
• Strong support is seen at 15.836(Lower BB) and break below could take the pair towards 15.783(23.6%fib).
Recommendation: Good to sell around 16.070 with stop loss of 16.200 and target price of 15.900
