FxWirePro: USD/ZAR edges lower ,investors remain on edge

• USD/ZAR edged lower on Thursday as traders remained focused on whether the fragile U.S.–Iran ceasefire would hold.

• The deal looked increasingly fragile, as Israel pressed ahead with airstrikes in Lebanon while Iran kept the Strait of Hormuz effectively closed, extending a severe disruption to global energy supplies..

• Investors exercised caution as energy-dependent economies stand exposed to oil price volatility, which threatens to stoke inflation and strain economic growth..

•On the data front,  South Africa’s net foreign reserves stood at $73.19 billion in March, falling from $75.84 billion in February, according to the central bank..

• The country’s manufacturing output declined 2.8% year-on-year in February, following a revised 0.1% drop in January.

• Immediate resistance is located at 16.506 (Daily high), any close above will push the pair towards 16.560 (50%fib).

• Strong support is seen at 16.285(38.2%fib) and break below could take the pair towards 15.936(23.6%fib).

Recommendation: Good to sell  around 16.360 with stop loss of 16.500 and target price of 16.200