• USD/ZAR fell sharply on Monday as South African rand’s firmed ahead of this week is on the finance minister’s mid-year budget review.
• Finance Minister Enoch Godongwana’s budget review is likely to show a modestly improved fiscal picture, but weaker growth forecasts.
• Markets will focus on whether Godongwana addresses the inflation target, which he sets and the central bank has urged him to lower.
• This week’s data calendar features Q3 unemployment and September manufacturing output on Tuesday, followed by mining production on Thursday.
• At GMT 10:40,the dollar was up 0.58% at 17.191 against South African rand .
• Immediate resistance is located at 17.300 (SMA 20), any close above will push the pair towards 17.485(38.2%fib).
• Strong support is seen at 17.081 (23.6%fib) and break below could take the pair towards 17.044 (Lower BB)
Recommendation: Good to sell around 17.200 with stop loss of 17.300 and target price of 17.000
