• USD/ZAR initially gained but gave up ground on Friday as investors digested South African Reserve Bank rate decision on Thursday and awaited new catalyst.
• The South African Reserve Bank unexpectedly left its benchmark interest rate unchanged at 7.00% on Thursday, surprising markets that had anticipated a rate cut and prompting a sharp selloff in the rand..
• Four members of the Monetary Policy Committee backed the decision to hold the rate steady, while two members preferred a 25-basis-point increase..
• The central bank lowered its inflation forecast for this year to 4.0% from 4.4% previously, while upgrading its 2026 economic growth forecast to 1.4% from 1.2%.
• Immediate resistance is located at 16.961(38.2%fib) any close above will push the pair towards 17.228(23.6%fib).
• Strong support is seen at 16.754(50%fib) and break below could take the pair towards 16.539(61.8%fib).
Recommendation: Good to buy around 16.800 with stop loss of 16.650 and target price of 17.100
