• The USD/ZAR rose to hit two week high on Monday after U.S. President Donald Trump said he would cut off funding for South Africa.
• On Sunday, Trump claimed certain people in South Africa were being treated badly and threatened to cut off funding until the issue is investigated.
• The 25% tariffs imposed by Trump on Canadian and Mexican imports from Tuesday, along with a 10% charge on Chinese goods, fuelled fears of a trade war that could slow global growth and feed inflation..
•At GMT 14:56, the pair was trading up 1.20 percent at 18.845
• Immediate resistance is located at 19.062 (23.6%fib), any close above will push the pair towards 19.164(Higher BB).
• Strong support is seen at 18.755 (38.2%fib) and break below could take the pair towards 18.466(50%fib)
Recommendation: Good to buy around 18.800 with stop loss of 18.000 and target price of 19.100
