The pair awaits S&P and Fitch rating action as well as US Non Farm Payroll (NFP) for further direction.
S&P is set to release its credit rating outlook on Friday. The rating agency is expected to downgrade the South Africa‘s credit rating. The credit rating
downgrade was mainly driven by slowing GDP growth, which makes South Africa more vulnerable to capital outflows, rand depreciation.
Junk status for South Africa will push the country’s debt cost higher and also rand to depreciate further against dollar.
Technically the pair’s major resistance is around 16 and nay break above will take the rand till 16.65/17.02/17.75.
On the lower side major support is around 15.37 (16th May low) and any break below targets 15/14.10 (55 W ).
It is good to buy at dips around 15.60 with SL around 15 for the TP of 16.65/17.02