FxWirePro: USD/ZAR extends decline, scope for further downside

• USD/ZAR extended decline on Wednesday as South African rand firmed supported by ​a weaker U.S. dollar as revived hopes ‌of an end to the war in Iran blunted safe-haven demand..

• The U.S. dollar remained under pressure after President Donald Trump said Washington had held "very good discussions" with Iran, easing safe-haven demand for the greenback.

• Appetite for emerging market currencies such as the rand also was boosted after weaker-than-expected U.S. labour data showed private payrolls rose by just 44,000 in July, well below forecasts of a 70,000 increase.

• On the data front,South Africa’s private sector extended its growth streak into July, though expansion slowed as softer job gains and falling inventories weighed on overall activity.

• Immediate resistance is located at 16.473(38.2%fib) any close above will push the pair towards 16.502(SMA20).

• Strong support is seen at 16.191(38.2%fib) and break below could take the pair towards 16.102(Lower BB).

Recommendation: Good to sell around 16.400 with stop loss of 16.550 and target price of 16.300