FxWirePro: USD/ZAR gives up early gains as market volatility spikes

• USD/ZAR gave up early gains and turned lower as market volatility spiked after U.S.-Iran negotiations collapsed.

• The U.S. military's blockade of all maritime traffic entering and exiting Iranian ports and coastal areas is scheduled to begin at 10 a.m. ET on Monday.

• U.S. President Donald Trump said on Sunday that U.S. forces would also intercept every vessel in international waters that had paid a toll to Iran.

• Oil prices surged 8% to cross $100 a barrel, with futures for U.S. West Texas Intermediate crude  hovering near $105 a barrel..

• The war in the Middle East has sent energy prices sharply higher, stoking inflation concerns and adding to worries about global growth.

• Immediate resistance is located at 16.572 (50%fib), any close above will push the pair towards 16.803(SMA 20).

• Strong support is seen at 16.323(Lower BB) and break below could take the pair towards 16.256(61.8%fib).

Recommendation: Be on sideliness