The South African PPI for March is predicted to increase by 0.3% monthly and by 3.4% annualized. Forex traders can compare this to the South African PPI for February, which increased by 0.3% monthly and by 4.5% annualized. US Initial Jobless Claims for the week of May 23rd are predicted at 2,100K, and US Continuing Claims for the week of May 16th are predicted at 25,750K. Forex traders can compare this to US Initial Jobless Claims for the week of May 16th, which were reported at 2,438K and to US Continuing Claims for the week of May 9th, which were reported at 25,073K. US Preliminary Durable Goods Orders for April are predicted to decrease by 19.0% monthly, and Durables Excluding Transportation are predicted to decrease by 14.0% monthly. Forex traders can compare this to US Durable Goods Orders for March, which decreased by 15.3% monthly and to Durables Excluding Transportation, which decreased by 0.6% monthly.

The Advanced US GDP for the first quarter is predicted to decrease by 4.8% annualized. Forex traders can compare this to the previous first-quarter GDP, which decreased by 4.8% annualized. The GDP Price Index for the first quarter is predicted to increase by 1.4% annualized. Forex traders can compare this to the previous first-quarter GDP Price Index, which increased by 1.4% annualized. The Core PCE for the first quarter is predicted to increase by 1.8% annualized. Forex traders can compare this to the previous first-quarter Core PCE, which increased by 1.8% annualized. US Pending Home Sales for April are predicted to decrease by 15.0% monthly and 11.2% annualized. Forex traders can compare this to US Pending Home Sales for March, which decreased by 20.8% monthly and 16.3% annualized.

The USD/ZAR forecast remains bearish after this currency pair dropped into the Ichimoku Kinko Hyo cloud. While selling pressure eased, US economic data continues to disappoint, and is weaker than many expected the recover to be. South Africa is reopening its economy after being coming under pressure to rescue the economy. With reforms being debated, will they suffice to strengthen the South African Rand? Subscribe to the PaxForex Daily Fundamental Analysis and earn over 5,000 pips per month.

Should price action for the USD/ZAR remain inside the or breakdown below the 17.0000 to 17.5200 zone the following trade set-up is recommended:

• Timeframe: D1
• Recommendation: Short Position
• Entry Level: Short Position @ 17.3700
• Take Profit Zone: 15.2000 – 15.6200
• Stop Loss Level: 17.7200

Should price action for the USD/ZAR breakout above 17.5200 the following trade set-up is recommended:

• Timeframe: D1
• Recommendation: Long Position
• Entry Level: Long Position @ 17.7200
• Take Profit Zone: 18.1650 – 18.2500
• Stop Loss Level: 17.5200

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