FxWirePro: USD/ZAR advances as risk-off sentiment pressures the rand

• 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