FxWirePro: USD/ZAR slips towards key support as rand firms after Trump delays strikes on Iran energy sites

• USD/ZAR fell sharply on Monday as the South African rand strengthened after Donald Trump stepped back from plans to target Iran’s power and energy infrastructure, improving risk appetite.

• Trump said on Monday that Washington and Tehran have held constructive talks and that he had backed down from targeting Iran's power network.

• Key South African export gold  pared some losses, falling 2% from 8% down before Trump's announcement.

•Domestically focused investor attention will be pinned on the central bank's rate decision on Thursday when economists polled by Reuters expect the bank to keep its main lending rate   steady at 6.75%.

• Other key economic releases this week include the composite leading business cycle indicator on Tuesday and producer inflation data on Thursday.

• Immediate resistance is located at 16.970(50%fib), any close above will push the pair towards 17.185(Higher BB).

• Strong support is seen at 16.674(61.8%fib) and break below could take the pair towards 16.470(SMA 20)

Recommendation: Good to buy around 16.720 with stop loss of 16.640 and target price of 17.000