FxWirePro: USD/ZAR gains some ground but upside is limited

• USD/ZAR gains some ground on Tuesday  as rising tensions in the Middle ​East and lower gold prices continued to pressure the ‌risk-sensitive currency ahead of domestic inflation data due on Wednesday.

• Prospects for a U.S.-Iran peace deal remained bleak as talks stalled, while Iran adopted a more aggressive military stance and vowed to keep the Strait of Hormuz closed until Washington meets its conditions.

•The more than ‌five-month-long ⁠conflict has upended the global rates outlook and stoked inflationary concerns through most of the year.

•On the domestic front, investors will focus on South Africa's July inflation data due on Wednesday, ​with economists expecting ​annual inflation to ⁠ease to 4.5% from 5.0% in June.

•South African business confidence improved in July, although persistent price pressures and uncertainty surrounding the Iran war continued to weigh on sentiment.

• Immediate resistance is located at 16.274(38.2%fib) any close above will push the pair towards 16.411(SMA20).

• Strong support is seen at 16.185(Daily low) and break below could take the pair towards 16.074(23.6%fib).

Recommendation: Good to sell around 16.270 with stop loss of 16.450 and target price of 16.150