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FxWirePro: USD/ZAR downside pressure builds, key support level in focus

• USD/ZAR edged lower on Wednesday as a fragile ceasefire between Israel and Iran boosted risk appetite and offered some relief to markets after prolonged geopolitical tensions..

• The market will be closely watching ceasefire between Israel and Iran as the outcome could significantly influence global risk sentiment, safe-haven demand, and commodity prices in the coming days.

•Looking ahead,   market participants will closely monitor the producer price index (PPI)   alongside the South African Reserve Bank’s quarterly bulletin, which is expected to provide valuable insights into foreign direct investment trends in Africa’s most industrialized nation.

• The technical outlook is negitive, as RSI is at 40and short-term momentum studies 5-, 9-, and 11-day DMAs pointing southwards.

• Immediate resistance is located at 17.835(SMA 20), any close above will push the pair towards 18.039(38.2%fib).

• Strong support is seen at 17.649(23.6%fib and break below could take the pair towards 17.526(Lower BB)

Recommendation: Good to sell  around 17.750 with stop loss of 18.200 and target price of 17.500

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