FxWirePro: USD/ZAR builds momentum into weekend

• USD/ZAR strengthened on Friday as   greenback strengthened on signs of progress in U.S.-EU trade negotiations.

• In the wake of the U.S.-Japan trade agreement, the European Commission signaled that a U.S.-EU trade deal is close, even as EU countries prepared retaliatory tariffs in case negotiations fail.

• Next week, local focus will shift to the South African Reserve Bank's interest rate decision, scheduled for July 31.

• Analysts and traders widely believe a further rate cut is likely, as inflation in June showed only a mild increase and stayed inside the central bank’s acceptable band.

• At GMT 15:11,the dollar   was up 0.88 % at 17.602 against South African rand.

• Immediate resistance is located at 17.988(38.2%fib), any close above will push the pair towards 18.129(Higher BB).

• Strong support is seen at 17.683(SMA 20) and break below could take the pair towards 17.456(23.6%fib)

Recommendation: Be on sidelines