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

• USD/ZAR initially gained but gave up ground   as investors adopted a cautious stance amid the ongoing Middle East conflict and awaited key U.S. inflation data due later this week for fresh signals on the Federal Reserve’s interest-rate outlook.

• Investors are turning their attention to Wednesday’s U.S. Consumer Price Index (CPI) report, one of the final major economic releases ahead of the Federal Reserve’s late-October policy meeting..

• Following last month’s first rate increase since 2023, the Federal Reserve’s next steps remain in focus as investors assess incoming data for signals of additional monetary tightening..

• Traders are pricing in an 81% chance of the Fed standing pat this month, up ​from 51% ​a month earlier, ⁠the CME FedWatch tool showed

• In the absence of significant local economic data, the rand remains sensitive to international market developments, including U.S. data releases and geopolitical tensions.

• Immediate resistance is located at 16.560 (50%fib), any close above will push the pair towards 16.750 (38.2%fib).

• Strong support is seen at 16.428 (SMA20) and break below could take the pair towards 16.354(38.2%fib)

Recommendation: Good to buy around 16.500 with stop loss of 16.300 and target price of 16.700