FxWirePro: USD/ZAR climbs as risk-off sentiment weighs on rand

• USD/ZAR strengthened on Thursday as the South African rand weakened amid risk-off sentiment fueled by the ongoing Israel-Iran conflict.

•  Fears of a broader military escalation in the Middle East intensified after Iran and Israel exchanged a new round of airstrikes, further destabilizing the already volatile region.

•  Market sentiment deteriorated further after U.S. President Donald Trump refused to clarify whether the United States would intervene, saying only, “I may do it. I may not do it.”

•The uncertainty surrounding potential U.S. involvement in the conflict has heightened risk aversion, fueling strong demand for traditional safe-haven assets like the dollar and pressuring risk-sensitive currencies like the rand.

•  At GMT 15:34, the  dollar was trading up 0.70% at 18.123 against South African rand.

• Technical signals are  strongly bullish as RSI is   at 57, daily momentum studies  5,9 and 11 DMAs are trending up.

• Immediate resistance is located at 18.131(38.2%fib), any close above will push the pair towards 18.191(Higher BB).

• Strong support is seen at 17.678(23.6%fib) and break below could take the pair towards 17.530(Lower BB)

Recommendation: Good to buy around 18.100 with stop loss of 17.800 and target price of 18.500