FxWirePro: USD/ZAR drops below 16.500 level, heads deeper into bear territory

• USD/ZAR dipped on Wednesday as   South African   rand  strengthened  after U.S. President Donald Trump signalled a possible peace deal with Iran.

•  Trump said that "great progress" had been made towards a comprehensive agreement with Iran and said he would pause an operation to escort ships through the Strait of Hormuz..

• Oil prices also falling to trade below $110 a barrel on expectations that bottled-up supply from the Middle East could resume.

•South Africa is a net importer of petroleum products and heavily exposed to fluctuations in global energy prices.

•A business survey showed on Wednesday that South Africa's private sector expanded at its fastest in nearly four years in April.

• Immediate resistance is located at 16.452 (50%fib), any close above will push the pair towards 16.780 (61.8%fib ).

• Strong support is seen at 16.122(38.2%fib) and break below could take the pair towards 16.039(Lower BB).

Recommendation: Good to sell  around 16.400 with stop loss of 16.600 and target price of 16.200