FxWirePro: USD/ZAR retreats as markets await U.S.-Iran talks and South Africa data

• USD/ZAR gave up early gains on Tuesday as markets looked ahead to potential U.S.-Iran negotiations and important South African economic events later this week, including inflation data and the central bank’s rate decision.

•  Tensions between Tehran and Washington escalated on Sunday as both sides exchanged threats, though U.S. President Donald Trump said he would consider meeting Iranian President Masoud Pezeshkian during his expected visit to New York for the U.N. meeting..

• Markets are gearing up for August inflation data and the South African Reserve Bank’s rate decision, both due Wednesday..

•    Separately, South Africa’s central bank said on Tuesday that its composite leading business cycle indicator fell 0.9% month-on-month in July.

Like other risk-sensitive ​currencies, the rand often takes cues ​from global ⁠developments, in addition to domestic economic data.

• Immediate resistance is located at 16.379(50%fib), any close above will push the pair towards 16.433(SMA 20).

• Strong support is seen at 16.173(38.2%fib) and break below could take the pair towards 16.124(SMA20)

Recommendation: Good to    sell 16.300 with stop loss of 16.500 and target price of 16.000