FxWirePro: USD/ZAR under pressure after early buying dries up

• USD/ZAR initially gained but gave up ground  as   assessed developments in the Middle East where progress on an Iran deal stalled.

•. Progress on U.S.-Iran peace talks stalled after a U.S. official said President Donald Trump was unhappy with the latest Iranian proposal to end the two-month war, dampening hopes for a resolution.

• The currency has been under pressure as elevated oil prices keep inflation concerns high.South Africa is a net importer of energy, leaving it highly exposed to swings in global oil prices.

•South Africa's composite leading business cycle indicator   rose 0.5% month-on-month in February, central bank data showed earlier on Tuesday.

•Later in the week, domestic investors will focus on South Africa's producer inflation numbers, money supply  and private sector credit   data, trade balance   and budget balance   figures, which could offer clues on the health of Africa's most industrialised economy.

• Immediate resistance is located at 16.644 (Daily high), any close above will push the pair towards 16.836 (50fib).

• Strong support is seen at 16.465(50%fib) and break below could take the pair towards 16.125 (LowerBB).

Recommendation: Good to sell  around 16.600 with stop loss of 16.800 and target price of 16.400