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

• USD/ZAR fell on Thursday as traders assessed developments in U.S.-Iran peace talks, while domestic inflation data showed a sharp rise in April prices as the impact of the war filtered through the economy..

• Inflation in Africa’s largest economy rose sharply in April, increasing expectations that the central bank could raise interest rates at its upcoming monetary policy meeting..

• Iran said it is reviewing Washington’s latest position on ending the war, after U.S. President Donald Trump said he would wait a few days to get the “right answers” from Tehran before deciding on next steps.

• Like other risk-sensitive currencies, the rand often takes cues from global drivers. It has been at the mercy of global market sentiment since the start of the U.S.-Israeli war with Iran at the end of February.

• Immediate resistance is located at 16.720(61.8%fib), any close above will push the pair towards 16.816(Higher BB).

• Strong support is seen at 16.394 (50%fib) and break below could take the pair towards 16.303(Lower BB).

Recommendation: Good to sell  around 16.430 with stop loss of 16.500 and target price of 16.300