• USD/ZAR strengthened on Thursday as rand pressured by a stronger dollar and higher oil prices as tensions between Iran and the United States persisted in the Middle East.
• Iran’s seizure of two ships in the Strait of Hormuz on Wednesday underscored its grip on the strategic passage, following U.S. President Donald Trump’s ceasefire extension and stalled peace talks.
• The dollar was on track for its first weekly gain in a month, making dollar-denominated bullion more expensive for holders of other currencies.
• Oil prices rose on Thursday, holding on to gains from the previous session that lifted prices above $100 a barrel.
• South Africa is a net importer of energy, leaving it highly exposed to swings in global prices.
• Immediate resistance is located at 16.668(Daily high), any close above will push the pair towards 16.839(38.2%fib).
• Strong support is seen at 16.515 (50%fib) and break below could take the pair towards 16.438(61.8%fib).
Recommendation: Good to buy around 16.600 with stop loss of 16.400 and target price of 16.900
