FxWirePro: USD/ZAR gains as rand weakens amid budget deadlock

• USD/ZAR rose on Tuesday as  South Africa's rand weakened amid ongoing negotiations over the domestic budget.

• South Africa's ANC and Democratic Alliance failed to agree on the budget by Tuesday, hours before a key parliamentary committee debate.

• South Africa's rand has depreciated about 0.7% since the annual budget was postponed in early March as coalition partners disagreed on a plan to hike value-added tax by 2 percentage points to 17%.

• Trade in the rand tends to be highly volatile when there are major local drivers like the budget wrangling or global risk events.

•Meanwhile, investors prepared for the looming impact of sweeping tariff announcements expected from the Trump administration on Wednesday.

• Immediate resistance is located at 18.354  (50%fib), any close above will push the pair towards 18.449(Higher BB).

• Strong support is seen at 18.239 (38.2%fib) and break below could take the pair towards 18.088(23.6%fib).

Recommendation: Good to buy around 18.300 with stop loss of 18.150 and target price of 18.500