FxWirePro: USD/ZAR outlook weaker on renewed downside pressure

• USD/ZAR dropped sharply Tuesday as the rand strengthened ahead of South Africa’s budget speech and a Ramaphosa-Trump meeting.

• Finance Minister Enoch Godongwana will attempt to pass the budget for the third time on Wednesday after two failed attempts due to coalition opposition over proposed tax hikes.

•The main sticking point remains the proposed tax increases, which have faced significant opposition from some coalition partners concerned about their economic impact.

•This ongoing disagreement highlights the challenges facing the government as it seeks to balance fiscal responsibility with political unity.

•The delegation from South Africa touched down in Washington Monday to discuss improving relations with the Trump administration before the heads of state meet Wednesday.

 At GMT 15:54, the pair was trading down 0.74 percent  at 17.934.

• Immediate resistance is located at 18.114  (Daily high), any close above will push the pair towards 18.309(38.2%fib).

• Strong support is seen at 17.909(23.6%fib) and break below could take the pair towards 17.725 (Lower BB).

Recommendation: Good to sell around 18.050 with stop loss of 18.200 and target price of 17.850