FxWirePro: USD/ZAR hits six month low, vulnerable to further losses

• USD/ZAR dropped to a six-month low on Tuesday as dollar softness continued as markets awaited fiscal clarity from Washington and ongoing trade deal uncertainty.              .

•  All eyes are on the U.S. Senate, where Republicans remain locked in a lengthy “vote-a-rama” to push through Trump’s divisive tax bill.

•Senate Republicans continued efforts early Tuesday to pass Trump’s sweeping tax-and-spending bill, despite internal party tensions over its projected $3.3 trillion debt impact.

•Meanwhile, with Trump’s July 9 tariff deadline nearing, investors are also closely watching trade talks with U.S. partners, though few deals have materialized.

• Technical signals are  strongly bearish as RSI is   at 36, daily momentum studies  5,9 and 11 DMAs are trending down.

• Immediate resistance is located at 17.731(50%fib), any close above will push the pair towards 17.796(SMA 20).

• Strong support is seen at 17.538(38.2%fib) and break below could take the pair towards 17.287(23.6%fib)

Recommendation: Good to sell  around 17.600 with stop loss of 18.000 and target price of 17.200