• USD/ZAR firmed on Wednesday as investors absorbed South Africa’s inflation data and looked ahead to the U.S. Federal Reserve’s interest rate decision later in the day.
• Attention remains on the Fed’s two-day meeting later today, with policymakers expected to keep interest rates unchanged.
• Statistics South Africa reported on Wednesday that consumer price inflation held steady at 2.8% in May, unchanged from April..
• At GMT 11:20, the dollar was trading up 0.57% at 18.117 against South African rand.
• Technical signals are strongly bearish as RSI is at 49, daily momentum studies 14,11 and 21 DMAs are trending down.
• Immediate resistance is located at 18.005(38.2%fib), any close above will push the pair towards 18.054(Higher BB).
• Strong support is seen at 17.701(23.6%fib) and break below could take the pair towards 17.591(Lower BB)
Recommendation: Good to sell around 18.150 with stop loss of 18.400 and target price of 17.500
