• USD/ZAR pair edged lower on Thursday as the South African rand strengthened, supported by a rebound in gold prices.
• South African rand gained despite data showing domestic manufacturing output contracted more than expected, with stronger precious metal prices helping offset concerns over the weak
•The U.S dollar was last down 0.1% against a basket of currencies, while prices of gold, a key South African export rose more than 1%.
•South Africa's manufacturing output fell 4.3% year-on-year in May, after falling by 2.9% year-on-year in April, statistics agency data showed on Thursday.
•Economists polled had expected output to decrease 3.2%, while Nedbank economists forecast a 3% contraction.
• Immediate resistance is located at 16.498(50%fib), any close above will push the pair towards 16.597. (Higher BB)
• Strong support is seen at 16.139(38.2%fib) and break below could take the pair towards 16.101(Lower BB)
Recommendation: Good to sell around 16.400 with stop loss of 16.700 and target price of 16.100
