FxWirePro: USD/ZAR uptrend gains momentum, as positive sentiment builds

•   USD/ZAR strengthened on Monday as investors positioned themselves ahead of upcoming inflation data and this week’s central bank rate decision.

•   Friday’s close saw traders largely ignore S&P Global’s first credit rating upgrade for South Africa in nearly two decades.

•  This week’s economic calendar includes October consumer inflation and September retail sales data on Wednesday, followed by the central bank’s interest rate decision on Thursday.

• Economists polled by   expect that the Monetary Policy Committee will cut its main lending rate by 25 basis points to 6.75%.

• At GMT 17:11,the dollar was up 0.18% at 17.105 against South African rand .

• Immediate resistance is located at 17.165  (Nov 12th high), any close above will push the pair towards 17.245(38.2%fib).

• Strong support is seen at 16.996 (Lower BB) and break below could take the pair towards 16.933(23.6%fib)

Recommendation: Good to buy around 17.100 with stop loss of 17.000 and target price of 17.400