FxWirePro: USD/ZAR edges lower but bullish outlook persists

• USD/ZAR  eased slightly  on Tuesday   as fresh U.S. and Iranian strikes in the Gulf tested a fragile truce and weighed on risk appetite.

• Tensions flared in the Gulf on Monday, with the U.S. and Iran reportedly engaging in fresh military actions as each sought to dominate the Strait of Hormuz via rival naval restrictions.

• The renewed hostilities jolted markets and served as a stark reminder that the war in the Middle East was far from over.

• Oil prices fell about 1% on Tuesday, giving back some gains after surging as much as 6% in the prior session.

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

• Immediate resistance is located at 16.850 (38.2%fib), any close above will push the pair towards 17.219 (23.6%fib).

• Strong support is seen at 16.540(50%fib) and break below could take the pair towards 16.496(Lower BB).

Recommendation: Good to buy  around 16.740 with stop loss of 16.550 and target price of 17.000