BUZZ-COMMENT-Playing USD/ZAR's Ichimoku cloud range favoured

Feb 24 (Reuters) - It has been a cautious start to a data-packed week for USD/ZAR, with technical indicators suggesting the sideways trend that began on February 7 is likely to persist.

South African inflation numbers for January are due for release on Wednesday. Expectations are for year-on-year CPI to rise 3.3% from a 3.0% December return. January producer prices are out on Thursday with a 1.0% year-on-year rise expected. Trade and budget balance numbers, also for January, are due on Friday.

From the U.S., personal consumption expenditure index numbers for January and the fourth quarter of 2024 are due for release later in the week.

USD/ZAR continues to respect the base of its daily Ichimoku cloud, today at 18.2538. The cloud base has supported the dollar since the November bull reversal. The cloud top caused USD/ZAR problems in early February and continues to provide resistance, currently at 18.6837. A rise in the cloud from today and moving into a sideways bias from February 26 to March 31 adds to the rangebound call.

The dollar is holding a slight advantage early on Monday, and a hammer style candlestick is forming. Without a preceding bear trend to reverse the candle, bull signal loses some significance.

A bullish moving average crossover, 100-day average crossing above the 200-day line, will bolster bullish sentiment and could argue the case for buying USD/ZAR on dips. However, for now the big dollar looks set to play out sideways within its Ichimoku cloud and gains are likely to be limited.

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