•USD/ZAR hit one-week high on Friday as investors awaited clarity on the South Africa’s disputed national budget.
• South Africa’s leading political parties are at odds over a plan to raise VAT by 1% over the next two years, sparking heated budget debates.
• The VAT hike was scrapped on Thursday, prompting investors to await further budget clarity.
• In addition to the domestic budget dispute, the South African rand has faced periods of volatility, driven in part by global uncertainty surrounding U.S. President Donald Trump's evolving tariff policies.
• Like many risk-sensitive currencies, the South African rand is influenced by a combination of global developments such as U.S. trade policy and local economic and political factors, making it particularly vulnerable to shifts in sentiment..
•At GMT 11:30, the pair was trading up 0. 33 percent at 18.835
• Immediate resistance is located at 18. 931 (50%fib), any close above will push the pair towards 19.123 (April 15th high).
• Strong support is seen at 18.556 (50%fib) and break below could take the pair towards 18. 239 (Feb 24th low)
Recommendation: Good to buy around 18.800 with stop loss of 18.350 and target price of 19.100
