USD/ZAR recovers from the low of $14.65 on strong dollar, market awaits FOMC meeting for further direction

• The rand has surged strongly in previous week till $14.65 after Fitch affirms SA’S investment grade credit rating.
   
• Fitch and S&P has kept South Africa rating at BBB- with stable outlook. Fitch said in its statement that low trend GDP growth, significant fiscal and external deficits and high debt levels which are balanced by strong policy institutions, deep local capital markets and a favourable government debt structure.
   
• USD/ZAR has declined from the high of $15.98 made on May 19th 2016.It is currently trading around $15.18.
   
• The pair has taken support near cloud $14.60 and slightly recovering from that level. Short term trend is slightly bullish as long as support $14.31 (55 W EMA) hold.
   
• The rand has mostly just reflected the global themes. The weak stock market and Stronger dollar has pushed up the USD/ZAR prices higher.
     
• On the lower side any break below $14.30 will drag the pair till $13.85/$13.
   
• Technically the pair’s major resistance is around 16 and nay break above will take the rand till 16.65/17.02/17.75.
   
• Markets await US Fed monetary policy meeting on Jun 15th for further direction.

It is good to buy at dips around $14.85-90 with SL around $14.30 for the TP of $16