• USD/ZAR slipped lower on Monday as U.S. dollar came under pressure as investors monitored the Middle East conflict and braced for the U.S. Federal Reserve's rate decision on Wednesday.
• Investors are also focused on the Fed's two-day policy meeting, which wraps up on Wednesday. The U.S. central bank is widely expected to keep interest rates unchanged.
• Investors will closely scrutinize the accompanying statement, economic projections, and Fed Chair Jerome Powell’s press conference for any signals on the future path of monetary easing.
• A dovish tilt from the Federal Reserve could intensify selling pressure on the U.S. dollar, which is already under strain as investors lose confidence in its safe-haven appeal.
• Immediate resistance is located at 17.935(38.2%fib), any close above will push the pair towards 18.057(Higher BB).
• Strong support is seen at 17.682(23.6%fib) and break below could take the pair towards 17.603(Lower BB)
Recommendation: Good to sell around 17.800 with stop loss of 18.200 and target price of 17.500
