FxWirePro: USD/ZAR retreats slightly but trend is still bullish

• USD/ZAR initially dipped but recovered ground   on Monday  as investors digested  South African manufacturing PMI data

•South Africa’s manufacturing sentiment deteriorated in October, dragged down by subdued domestic demand and sluggish exports, a purchasing managers’ index (PMI) survey showed on Monday.

• The seasonally-adjusted PMI sponsored by South African bank Absa fell to 49.2 points in October from 50.8 in September, highlighting “the fragility of the manufacturing recovery,” Absa said in a statement..

• Local investors will later turn their focus to vehicle sales data, due around 1200 GMT, which will give a snapshot of consumer demand for big-ticket items.

• Meanwhile,Investors have also their eyes on ADP U.S. employment data and ISM PMIs this week, for indicators that could alter the Fed's hawkish stance..

• Immediate resistance is located at 17.352  (38.2%fib), any close above will push the pair towards 18.500 (SMA 20).

• Strong support is seen at 17.230 (Daily low) and break below could take the pair towards 17.087 (23.6%fib).

Recommendation: Good to buy around 17.300 with stop loss of 17.200 and target price of 17.380