FxWirePro: USD/ZAR gains momentum, trend remains bullish

• The USD/ZAR rose  higher on Tuesday   as investors pulled out of riskier assets in a global flight to safety triggered by the escalating conflict in the Middle East..

• The spike in oil prices has led to traders reassessing expectations of interest rate cuts by global central banks, especially in countries that rely heavily on crude imports.

•Traders are also viewing the U.S. as a relative refuge due to its greater energy independence, even as the dollar's status as a dependable safe haven has been questioned over the past year.

• Precious metals gold and platinum, two of South Africa’s most important export commodities, fell sharply as stronger dollar demand and shifting risk sentiment weighed on prices.

• Immediate resistance is located at 16.748(50%fib), any close above will push the pair towards 16.895(Dec 15th high).

• Strong support is seen at 16.344(38.2%fib) and break below could take the pair towards 16.037(Daily low)

Recommendation: Good to buy around 15.560 with stop loss of 15.200 and target price of 16.800