FxWirePro: USD/ZAR sustains gains as uptrend remains strong

• USD/ZAR advanced  on Friday as the dollar surged on better-than-forecast U.S. economic data.

• The dollar index  , which measures the greenback against major peers, climbed   after figures on U.S. economic growth, unemployment claims, durable goods, and wholesale inventories all beat expectations.

• U.S. Q2 GDP was revised up to 3.8% from 3.3%, defying Reuters’ forecast for no change, the Commerce Department reported Thursday.

• Market attention now turns to the personal consumption expenditures (PCE) price index, the Federal Reserve’s preferred inflation gauge, scheduled for release at 1230 GMT.

•  Friday’s personal consumption expenditures (PCE) price index, the Fed’s preferred inflation gauge, is forecast to rise 0.3% month-on-month and 2.7% year-on-year for August, according to a Reuters poll..

• Immediate resistance is located at 17.433(SMA 20), any close above will push the pair towards 17.519(38.2%fib).

• Strong support is seen at 17.224(23.6%fib) and break below could take the pair towards 17.154(Lower BB)

Recommendation: Good to buy around 17.400 with stop loss of 17.200 and target price of 17.650