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FxWirePro: USD/ZAR gains as stronger dollar outweighs upbeat South Africa's trade surplus

• USD/ZAR  strengthened on Friday  as stronger  dollar offset  better-than-expected ​trade balance data.

• The U.S. dollar rose against a basket of major currencies on Friday, recovering after Japanese authorities intervened to support the yen, prompting traders to reassess positions.

• South Africa posted a trade surplus of 17.75 billion rand ($1.07 billion) in June, well above forecasts of 3.45 billion rand, highlighting the resilience of its external sector..

• The Middle East conflict continues to weigh on markets, as renewed strikes have dimmed hopes for a swift resolution despite intermittent diplomatic efforts.

• Like other emerging market currencies, the rand ​is sensitive to global risk sentiment, developments ​in U.S. ⁠monetary policy and domestic economic data.

• Immediate resistance is located at 16.801(38.2%fib) any close above will push the pair towards 16.933(Higher BB).

• Strong support is seen at 16.476(50%fib) and break below could take the pair towards 16.273(July 16th low).

Recommendation: Good to sell  around 16.600 with stop loss of 16.750 and target price of 16.100

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