FxWirePro: USD/ZAR edges higher, set to stay on back foot

• USD/ZAR edged higher on Friday as investors monitored prospects for a potential deal to end the Iran war and turned their attention to next week's domestic inflation data.

• U.S. President Donald Trump said the countries were nearing a deal, but terms of a proposed memorandum to end the Gulf war, outlined by sources on Friday, appeared to heavily favour Iran.

• Iranian Foreign Minister Abbas Araghchi said the proposed “Islamabad Memorandum of Understanding” was “never been closer” to completion, calling for restraint on speculation about its terms, while signalling progress in talks aimed at ending the conflict. ".

• Investors will focus on May inflation and retail sales data due next week for signals on the health of Africa’s largest economy..

• Like other risk-sensitive currencies, the rand is strongly driven by global market sentiment, especially since the Iran war began in late February.

• Immediate resistance is located at 16.431  (SMA 20), any close above will push the pair towards 16.619 (Higher BB).

• Strong support is seen at 16.171 (38.2%fib) and break below could take the pair towards 16.056 (Lower BB).

Recommendation: Good to sell  around 16.400 with stop loss of 16.800 and target price of 16.200