FxWirePro: USD/ZAR trades in narrow range as Middle East tensions fester

• USD/ZAR traded in narrow range on Monday as reports that the Strait of Hormuz had again been closed sent oil prices higher and weighed on appetite for risk assets.

• A ceasefire between the ‌U.S. ⁠and Iran appeared in jeopardy on Monday after the takeover of the cargo ship.

• USD/ZAR currency has been at the mercy of global market sentiment since the U.S. and Israel started the war at the end of February and Iran retaliated on targets throughout the Gulf.

•Oil prices jumped around 5% on fears the ceasefire would collapse, and as flows through the Strait of Hormuz remained largely halted.

• The South African Reserve Bank will publish a Monetary Policy Review document on Tuesday, which could shed light on its rate-setting trajectory this year. y.

• Statistics South Africa will also release March inflation data on Wednesday, with analysts polled by Reuters expecting it to inch up to 3.1% year-on-year from 3.0% in February.

• Immediate resistance is located at 16.524 (50%fib), any close above will push the pair towards 16.693 (SMA 20).

• Strong support is seen at 16.203(61.8%fib) and break below could take the pair towards 16.083(Lower BB).

Recommendation: Good to buy  around 16.350 with stop loss of 16.100 and target price of 16.700