• USD/ZAR initially dipped but recovered ground as investors awaited signs of progress on a U.S.-Iran peace deal and the reopening of the Strait of Hormuz.
• Iran and Oman reached an understanding on Wednesday over a shipping route through the Strait of Hormuz, though negotiations are still ongoing.
The U.S. dollar index rose 0.2% ahead of Friday's jobs report as investors shifted their focus to incoming economic data after the Federal Reserve offered little forward guidance on interest rates.
•Oil prices rose 1.8% as traders remained cautious about the talks' outcome and whether they will lead to the restoration of crude supplies through the waterway.
•Like other risk-sensitive currencies, the rand has been at the mercy of global market sentiment, particularly since the start of the U.S.-Iran war on February 28.
• Immediate resistance is located at 16.382 (38.2%fib), any close above will push the pair towards 16.507(SMA 02).
• Strong support is seen at 16.289(Daily low) and break below could take the pair towards 16.163(Lower BB).
Recommendation: Good to sell around 16.360 with stop loss of 16.500 and target price of 16.200
