• USD/ZAR edged higher on Monday as South Africa's rand weakened ahead of a slew of local economic data releases this week, which could give hints on the health of the local economy.
• On Friday, the rand, along with many other emerging market currencies, gained ground due to a weaker dollar following Federal Reserve Chair Jerome Powell's comments.
• Investors will focus on July’s figures for producer inflation, money supply, trade, and the budget balance to gauge the health of South Africa's economy.
• Immediate resistance is located at 17.8486 (Daily high), any close above will push the pair towards 19.9033(38.2%fib).
• Strong support is seen at 17.6108 (23.6%fib) and break below could take the pair towards 17.4807 (Lower BB).
Recommendation: Good to sell around 17.7040 with stop loss of 17.8700 and target price of 17.5560
