• USD/ZAR strengthened on Tuesday as rand weakened amid fragile risk sentiment stemming from the Israel-Iran conflict, with focus turning to the Fed’s upcoming policy call.
• Attention remains on the Fed’s two-day meeting, where policymakers are expected to hold rates steady.
• Investors will examine the Fed statement, projections, and Powell’s remarks for clues on future rate cuts.
• Domestic investors are awaiting Wednesday's consumer inflation and retail sales data, which could shape expectations around the South African Reserve Bank’s monetary policy stance.
• Technical signals are strongly bearsih as RSI is at 49, daily momentum studies 14,11 and 21 DMAs are trending down.
• Immediate resistance is located at 18.005(38.2%fib), any close above will push the pair towards 18.054(Higher BB).
• Strong support is seen at 17.701(23.6%fib) and break below could take the pair towards 17.591(Lower BB)
Recommendation: Good to sell around 18.000 with stop loss of 18.300 and target price of 17.500
