FxWirePro: USD/ZAR edges higher on firm US dollar demand

• USD/ZAR trading near one-week high on Monday as U.S. attacks on Iran intensified geopolitical uncertainty and dampened risk appetite.

•  Over the weekend, U.S. forces launched precision strikes on three of Iran’s key nuclear facilities, marking a significant escalation in Middle East tensions and raising fears of broader regional conflict.

• Investors have been worried about the impact of a potential Hormuz closure on oil prices, which soared to a five-month high on Monday, and its impact on inflation.

•Looking ahead, Investors await South Africa's producer inflation and employment data this week to assess the health of its economy.

• The technical outlook is positive, as RSI holds at 58 and short-term momentum studies (5-, 9-, and 11-day DMAs) continue to rise.

• Immediate resistance is located at 18.233(50%fib), any close above will push the pair towards 18.432(61.8%fib).

• Strong support is seen at 17.950(38.2%fib) and break below could take the pair towards 17.700(23.6%fib)

Recommendation: Good to buy around 18.100 with stop loss of 17.900 and target price of 18.500