FxWirePro: USD/ZAR runs out of steam but maintains bullish outlook

•   USD/ZAR edged lower on Monday as the South African rand strengthened, supported by improved global risk appetite driven by rising expectations of a Federal Reserve rate cut next month.

•   Fed funds futures now point to a roughly 65% chance that the Fed will cut by 25 basis points next month.

•  The rand and other risk-sensitive assets fell sharply last week, weighed down by worries over the health of the U.S. economy and elevated equity market valuations.

• This week brings a busy slate of local economic releases, including the leading business cycle indicator on Tuesday, producer inflation data on Thursday, and credit, trade, and budget figures on Friday.

• At GMT 15:41,the dollar was down 0.31% at 17.319 against South African rand .

• Immediate resistance is located at 17.400  (50%fib), any close above will push the pair towards 17.529(Higher  BB).

• Strong support is seen at 17.234 (SMA 20) and break below could take the pair towards 17.196(38.2%fib)

Recommendation: Good to buy around 17.300 with stop loss of 17.000 and target price of 17.500