FxWirePro: USD/ZAR set for bigger drop, but close below key fibo needed

• USD/ZAR slipped lower   on Friday as Fed cut interest rates by 50 bps on Wednesday, weakening the dollar  boosted the risk-sensitive rand.

• The South African Reserve Bank joined the ranks of central banks easing monetary policy by announcing a 25 basis point rate cut on Thursday, marking its first reduction in over four years.

• South African  rate decision follows the Federal Reserve's first 50-basis-point rate cut in over four years .

• At 17:57 GMT, the rand was trading at 17.446 down 0.06% against the dollar, lowest level since 28th July 2023.

• Immediate resistance is located at 17.603 (Daily high), any close above will push the pair towards 17.645(50%fib).

• Strong support is seen at 17.449  (23.6%fib) and break below could take the pair towards 17.388 (Lower BB).

Recommendation: Good to sell around 17.470 with stop loss of 17.510 and target price of 17.380