FxWirePro: USD/ZAR neutral in the near-term, scope for downward resumption

• The USD/ZAR dipped on Monday   as   rand firmed as investors assessed the implications of U.S. military action in Venezuela, escalating geopolitical tensions.

•Investors stayed calm on Monday, with Asian stocks rising and oil prices easing, while safe-haven demand pushed gold higher after Trump said the U.S. would take control of the oil producer.

• The U.S. detained Venezuela’s President Nicolas Maduro over the weekend  on drug-trafficking charges, as President Trump announced temporary American control of Venezuela.

•Trump’s moves in Venezuela raised concerns about implications for China–Taiwan relations and whether the U.S. may pursue more aggressive regime change efforts in Iran..

 •At GMT 08:27, the pair was trading down  0.14 percent  at 16.467

• Immediate resistance is located at 16.733(SMA 20), any close above will push the pair towards 16.924(38.2%fib).

• Strong support is seen at 16.450 (23.6%fib) and break below could take the pair towards 16.363(Lower BB)

Recommendation: Good to sell around 16.500 with stop loss of 16.800 and target price of 16.200