• USD/ZAR rose on Friday as rand weakened much-anticipated interest rate decision by the South African Reserve Bank next week.
• Next week, domestically focused investor attention will be pinned on the central bank's rate decision on Thursday.
• Economists expect the central bank to keep its main lending rate steady at 6.75%..
• Other economic indicators due next week include the composite leading business cycle indicator on Tuesday, and producer inflation data on Thursday.
• The rand fell by more than 3% the week before last, declined by over 2% last week, and is on track for a further drop of about 1% this week.
• Immediate resistance is located at 17.006(38.2%fib), any close above will push the pair towards 17.146(Higher BB).
• Strong support is seen at 16.685(50%fib) and break below could take the pair towards 16.413(SMA 20)
Recommendation: Good to buy around 16.900 with stop loss of 16.600 and target price of 17.200
