• USD/ZAR eased Tuesday as rand was buoyed after the government said it will reduce its fuel levy for one month to stop fuel prices rising even further, in an effort to cushion the impact of the Iran war.
• The rand has been driven by global sentiment since the U.S.–Israel war began in late February, with Iran’s retaliation adding pressure.
•The rand had a strong 2025 and had started 2026 on the front foot, making it vulnerable to a correction.
• South Africa posted a trade surplus of 36.92 billion rand ($2.17 billion) in February, according to revenue service data.
• The central bank reported FDI inflows of 41.3 billion rand in Q4 2025, reversing outflows of 21.0 billion rand in Q3.
• Immediate resistance is located at 17.231(23.6%fib), any close above will push the pair towards 17.307(Higher BB).
• Strong support is seen at 16.933(38.2%fib) and break below could take the pair towards 16.750(SMA 20)
Recommendation: Good to buy around 16.950 with stop loss of 16.700 and target price of 17.100
