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

• The USD/ZAR slipped lower on Friday  as four-week losing streak, supported by firmer gold prices and a subdued dollar, while lower oil prices also offered relief to the net energy importer.

• Prices of gold, a major South African export, rose more than 1% on Friday, while the US dollar traded flat against a basket of currencies as market players weighed lingering inflation concerns and the outlook for Federal ⁠Reserve interest rates.

•Oil prices fell as Middle East supply concerns eased after US President Donald Trump said the country would not attack Iran before elections next month
.
• The rand often takes cues from global factors such as U.S. economic data, commodities price alongside domestic economic developments.

• Immediate resistance is located at 16.690 (38.2%fib), any close above will push the pair towards 16.815(Higher BB).

• Strong support is seen at 16.494 (50%fib) and break below could take the pair towards 16.424(SMA 20)

Recommendation: Good to buy around 16.450 with stop loss of 16.300 and target price of 16.700
 

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