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FxWirePro: USD/ZAR retreats slightly but bias is bullish

• 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

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