FxWirePro: USD/ZAR downtrend slows, but bearish sentiment remains

• USD/ZAR initially dipped but recovered some ground on as markets reacted to South Africa’s latest inflation figures.

• South Africa's annual inflation rate edged up to 3.0% in June from 2.8% in May, matching market expectations.

• Analysts noted the figure remains comfortably within the central bank’s 3–6% target band, potentially giving the South African Reserve Bank (SARB) scope to ease policy further. The SARB is set to hold its next rate-setting meeting next week.

• Emerging currency markets remained subdued amid ongoing tariff uncertainty and skepticism over how they might react even if clarity emerge.

•Investor caution persisted as the August 1 deadline for multiple trade deals drew near, clouding the global outlook.

• At GMT 16:31,the dollar   was down 0.03 % at 17.535 against South African rand.

• Immediate resistance is located at 17.971(38.2%fib), any close above will push the pair towards 18.115(Higher BB).

• Strong support is seen at 17.517(50%fib) and break below could take the pair towards 17.408(Lower BB)

Recommendation: Good to sell around 17.550 with stop loss of 17.700  and target price of 17.200