FxWirePro: USD/ZAR uptrend loses steam, remains on bullish path

• The USD/ZAR edged  lower on Wednesday dollar weakened  ahead of  minutes of the Federal Reserve's September meeting for fresh clues on its monetary policy outlook.

• Investors are now looking out for minutes of the September Federal Open Market Committee meeting, due on Wednesday, to gauge the possibility of further interest rate hikes this year.

•Markets have pared bets for a Fed rate hike this month after softer-than-expected job growth in September.

•Traders now see only a 22% chance of the Fed raising rates this month but are still pricing in an 84% probability of an increase in December, according to CME's FedWatch Tool.

•Meanwhile, South Africa's central bank said on Tuesday that the risk of second-round inflation effects had become more pronounced as oil prices stayed higher for longer and El Nino clouded the outlook.

• Immediate resistance is located at 16.675  (38.2%fib), any close above will push the pair towards 16.770(Higher BB).

• Strong support is seen at 16.442 (50%fib) and break below could take the pair towards 16.357(SMA 20)

Recommendation: Good to buy around 16.400 with stop loss of 16.300 and target price of 16.700