• USD/ZAR dipped on Thursday as heightened geopolitical uncertainty weighed on the pair.
• The U.S. and Iran traded air attacks for a second successive day, with President Donald Trump vowing further strikes if Tehran does not immediately agree to a peace deal..
• Data showed on Thursday that U.S. producer prices increased more than expected in May, leading to the largest annual gain in 3-1/2 years as the Middle East conflict drove up the cost of energy products.
• Like other risk-sensitive currencies, the rand has been driven largely by global market sentiment, particularly since the start of the U.S.-Israeli war against Iran..
• Immediate resistance is located at 16.637 (50%fib), any close above will push the pair towards 16.709(Higher BB).
• Strong support is seen at 16.420(SMA 20) and break below could take the pair towards 16.397(38.2%fib).
Recommendation: Good to sell around 16.550 with stop loss of 16.800 and target price of 16.400
