• USD/ZAR strengthened on Monday as South African rand weakened as escalating tensions in the Middle East dampened risk sentiment.
• U.S. and Iranian forces have exchanged heavy missile and drone assaults, with Tehran targeting U.S. facilities in states across the Gulf on Sunday and saying it had again closed the vital Strait of Hormuz.
•Some 20% of the world's oil and liquefied natural gas transited the strait before the war began at the end of February.
•Like other emerging-market currencies the rand tends to take direction from global factors, including U.S. economic data and geopolitical developments.
• Immediate resistance is located at 16.487 (50%fib) any close above will push the pair towards 16.627(Higher BB).
• Strong support is seen at 16.347(SMA20) and break below could take the pair towards 16.162(38.2%fib).
Recommendation: Good to sell around 16.400 with stop loss of 16.650 and target price of 16.100
