• USD/ZAR edged lower as the rand firmed on potential U.S.-Iran peace talks, with focus on upcoming month-end domestic data.
• Oil prices slipped in volatile trading on Friday after reports that Iran’s Foreign Minister Abbas Araqchi was set to arrive in Islamabad, raising hopes that U.S.-Iran peace talks could resume.
• The dollar softened but was still headed for its first weekly gain in nearly a month as investors remained nervous about Middle East tensions.
• South Africa is a net importer of energy, leaving it highly exposed to swings in global prices.
• Domestic focus next week will be on South Africa’s leading business cycle indicator, producer inflation, money supply, private sector credit , as well as trade and budget balance data.
• Immediate resistance is located at 16.584 (SMA 20), any close above will push the pair towards 16.755 (38.2%fib).
• Strong support is seen at 16.461(50%fib) and break below could take the pair towards 16.106(61.8%fib).
Recommendation: Good to sell around 16.600 with stop loss of 16.800 and target price of 16.300
