• USD/ZAR dipped Tuesday as risk-sensitive currencies like rand firmed ahead of the U.S. Federal Reserve's policy decision.
• Markets are pricing in nearly a 40% chance that the Federal Reserve will raise interest rates by 25 basis points on Wednesday, up from around 20% a week ago .
• Oil prices extended losses on Tuesday, falling to their lowest levels in more than a week as hopes for a resolution to the U.S.-Israeli conflict with Iran improved sentiment and eased concerns over global supply disruptions..
• On the domestic front, data released on Tuesday showed South Africa's composite leading business cycle indicator fell 0.3% month-on-month in May, pointing to a modest deterioration in forward-looking economic conditions.
• Immediate resistance is located at 16.881(38.2%fib) any close above will push the pair towards 16.985(Daily high).
• Strong support is seen at 16.584(38.2%fib) and break below could take the pair towards 16.438(SMA20).
Recommendation: Good to buy around 16.600 with stop loss of 16.450 and target price of 16.800
