FxWirePro: USD/ZAR set for bigger drop, but close below key fibo needed

• USD/ZAR slipped lower on Tuesday as South African rand firmed  buoyed by hopes    of a less damaging trade deal with the U.S. after President Trump extended the tariff deadline to August 1.

•  South Africa faces a 30% tariff on its exports to the U.S., but the extended deadline has created an opportunity for further negotiations.

• The U.S. is South Africa's second-largest trading partner after China. Alongside minerals, car parts, and manufactured goods, South Africa also exports agricultural products to the U.S. The proposed tariffs threaten around 35,000 jobs in the country's citrus industry if implemented.

• South Africa's presidency rejected the proposed 30% tariff as inaccurate and said it would continue talks with the U.S. to resolve the issue.

 •At GMT 11:15, the pair was trading down  0.49 percent  at 17.590

• Immediate resistance is located at 17.957(50%fib), any close above will push the pair towards 17.186(61.8%fib).

• Strong support is seen at 17.380(38.2%fib) and break below could take the pair towards 17.461(23.6%fib)

Recommendation: Good to sell  around 17.800 with stop loss of 18.100 and target price of 17.300