• USD/ZAR retreated on Monday as the South African rand strengthened after Iran announced its attacks on Israel had ended, easing geopolitical tensions and supporting risk-sensitive currencies.
• Iran's military announced on Monday that its first wave of attacks on Israel since a ceasefire in April was now over, although it threatened to resume the strikes if Israel continued attacks on Lebanon.
•Oil prices rose near 5% as investors reacted to the latest strikes and renewed attacks in Lebanon a day earlier.
• The rand, like other risk-sensitive currencies, is driven by global sentiment and has been pressured by risk aversion since the US-Israel-Iran conflict began in late February.
• Immediate resistance is located at 16.670 (Daily high), any close above will push the pair towards 16.767(61.8%fib).
• Strong support is seen at 16.422(50%fib) and break below could take the pair towards 16.234(6th July).
Recommendation: Good to sell around 16.550 with stop loss of 16.650 and target price of 16.400
