• USD/ZAR rose above 18.000 level on Thursday as South African rand weakened as investors awaited the central bank’s rate decision and watched for progress on a U.S. trade deal before the August 1 tariff deadline..
• South Africa, aiming to cut the 30% U.S. import tariff on its exports, has pledged to buy American LNG, ease poultry import restrictions, and invest $3.3 billion in U.S. industries like mining.
• Looking ahead, the South African Reserve Bank is set to announce its rate decision on Thursday, with economists widely expecting a 25 basis point cut.
• The rand, a risk-sensitive currency, slid sharply on Wednesday, closing above 18 to the dollar for the first time since June 20.
• At 17:57 GMT, the dollar was trading at 17.936 up 0.45% against the South African rand.,
• Immediate resistance is located at 18.188 (50%fib), any close above will push the pair towards 18.336(May 12th high).
• Strong support is seen at 17.865 (38.2%fib) and break below could take the pair towards 17.775(SMA 20).
Recommendation: Good to buy around 18.000 with stop loss of 17.700 and target price of 18.300
