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FxWirePro: USD/ZAR recovers slightly but bears are not done yet

• USD/ZAR strengthen on Tuesday as   South African rand weakened as markets focused on the prospect of renewed talks between the United States and Iran.

• U.S. President Donald Trump said on Tuesday talks with Tehran on ending the war could resume this week.

• Despite last weekend’s talks in Islamabad failing to yield a breakthrough, markets continued to hold onto hopes that diplomacy could still lead to a resolution.

•The rand has remained highly volatile since the Iran war erupted in late February, with escalating geopolitical tensions driving a risk-off sentiment, heightening uncertainty and weighing on emerging market currencies.

• Immediate resistance is located at 16.432  (50%fib), any close above will push the pair towards 16.614(50%fib).

• Strong support is seen at 16.218(Lower BB) and break below could take the pair towards 16.097 (38.2%fib).

Recommendation: Good to sell  around 16.360 with stop loss of 16.500 and target price of 16.200

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