FxWirePro: USD/ZAR attracts selling interest, could be on verge of a bigger drop

• USD/ZAR fell on Monday as the South African rand firmed   as investors turned their attention towards the 2026 national budget to be tabled later this week.

• Local investors are awaiting Wednesday’s budget speech by Enoch Godongwana for clarity on the ruling coalition’s fiscal priorities, plans to tackle national debt, and the direction of upcoming economic reforms.

• In its November budget review, National Treasury of South Africa projected a consolidated budget deficit of 3.8% for the current fiscal year, narrowing to 3.3% by 2027.

 At GMT 16:37, the pair was trading down 0.21 percent  at 15.980.

• Immediate resistance is located at 16.120 (38.2%fib), any close above will push the pair towards 16.278 (Higher BB).

• Strong support is seen at 15.981(SMA 20) and break below could take the pair towards 15.632 (Lower BB).

Recommendation: Good to sell around 16.000 with stop loss of 16.600 and target price of 15.900