• The USD/ZAR rose on Tuesday as South African rand fell after The South African Reserve Bank flagged limited room for rate cuts amid global uncertainty.
• The South African Reserve Bank (SARB) warned that a global trade war could significantly disrupt economic activity worldwide, with South Africa likely to experience negative spillover effects.
• In its biannual monetary policy review, the South African Reserve Bank (SARB) warned that the global trade war initiated by U.S. President Donald Trump poses a significant threat to global economic activity, with potential spillover effects anticipated for South Africa.
• The South African rand remains highly reactive to shifts in market sentiment, which has significantly worsened due to the ongoing escalation of Trump’s global tariff war.
• Immediate resistance is located at 19.071(50%fib), any close above will push the pair towards 19.379(38.2%fib).
• Strong support is seen at 18.758(61.8%fib) and break below could take the pair towards 18.431(April 2nd high)
Recommendation: Good to buy around 19.000 with stop loss of 18.800 and target price of 19.500
