• USD/ZAR strengthened on Wednesday as rand was pressured by a firmer dollar and hawkish signals from the U.S. Federal Reserve that dampened appetite for riskier assets.
• Expectations for a Fed rate increase have strengthened following last week's policy decision, as recent remarks from officials highlighted persistent inflation concerns despite a resilient economy..
• The U.S. dollar was additionally buoyed by continued ambiguity surrounding the fragile peace agreement with Iran..
•Like other risk-sensitive currencies, the rand often takes cues from global drivers such as U.S. policy and economic data in addition to domestic reports.
• Immediate resistance is located at 16.652 (Higher BB), any close above will push the pair towards 16.778 (38.2%fib).
• Strong support is seen at 16.448(50%fib) and break below could take the pair towards 16.352(SMA 20).
Recommendation: Good to buy around 16.550 with stop loss of 16.300 and target price of 16.800
