• USD/ZAR edged higher on Friday as the rand weakened amid fragile risk sentiment after the U.S. indicated it could maintain its naval blockade of Iran indefinitely and increase economic pressure on Tehran.
• The South African rand typically strengthens when risk appetite improves, but concerns over the U.S.-Iran standoff disrupting oil supplies and weakening global growth may keep investors cautious.
•The U.S. dollar fell against a basket of major currencies after data showed U.S. retail sales unexpectedly declined in July.
• US Retail sales fell 0.6% in July after an unrevised 0.2% increase in June, according to the Commerce Department’s Census Bureau.
• Immediate resistance is located at 16.323(38.2%fib) any close above will push the pair towards 16.432(SMA20).
• Strong support is seen at 16.043(38.2%fib) and break below could take the pair towards 15.899(Lower BB).
Recommendation: Good to sell around 16.300 with stop loss of 16.450 and target price of 16.100
