• USD/ZAR strengthen on Tuesday as South African rand weakened as markets focused on the prospect of renewed talks between the United States and Iran.
• U.S. President Donald Trump said on Tuesday talks with Tehran on ending the war could resume this week.
• Despite last weekend’s talks in Islamabad failing to yield a breakthrough, markets continued to hold onto hopes that diplomacy could still lead to a resolution.
•The rand has remained highly volatile since the Iran war erupted in late February, with escalating geopolitical tensions driving a risk-off sentiment, heightening uncertainty and weighing on emerging market currencies.
• Immediate resistance is located at 16.432 (50%fib), any close above will push the pair towards 16.614(50%fib).
• Strong support is seen at 16.218(Lower BB) and break below could take the pair towards 16.097 (38.2%fib).
Recommendation: Good to sell around 16.360 with stop loss of 16.500 and target price of 16.200
