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

• 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

 

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