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

• USD/ZAR slipped on Thursday as the South African rand strengthened after U.S. President Donald Trump eased market concerns over possible U.S. military action against Iran.

• Trump said on Wednesday afternoon that the killings during Iran’s nationwide protest crackdown were easing, signaling a wait-and-see approach to the crisis..

• The U.S. dollar firmed against a basket of currencies, while gold prices eased as Trump’s seemingly softer geopolitical tone reduced safe-haven demand.

• Like other risk-sensitive currencies, the rand often takes its cues from global drivers such as U.S. policy.

• Immediate resistance is located at 16.468  (38.2%fib), any close above will push the pair towards 16.540(SMA 20).

• Strong support is seen at 16.308(38.2%fib) and break below could take the pair towards 16.262(Lower BB)

Recommendation: Good to sell around 16.350 with stop loss of 16.500 and target price of 16.200