FxWirePro: USD/ZAR continues to recovers , upside pressure builds

• USD/ZAR edged higher Tuesday as   investors remained cautious ahead of a deadline set by U.S. President Donald Trump for Iran to reopen the Strait of Hormuz.

  • Iran and Israel traded attacks as Tehran refused to reopen the Strait of Hormuz or accept a ceasefire ahead of President Donald Trump’s deadline to strike a deal or face potential military action.

 • The Middle East war and closure of the Persian Gulf chokepoint have driven energy prices higher, with oil holding above $110 a barrel.

• The rand has remained highly sensitive to global sentiment since the U.S.–Israel conflict with Iran began in late February, weakening as investors shift toward safe-haven assets amid rising geopolitical risks.

• The local currency fell about 6% last month, with economists expecting inflation to rise in the energy-importing economy.

• Immediate resistance is located at 16.951(Daily high), any close above will push the pair towards 17.151(23.6%fib).

• Strong support is seen at 16.739(38.2%fib) and break below could take the pair towards 16.535(Lower BB)

Recommendation: Good to buy around 16.850 with stop loss of 16.500 and target price of 17.200