FxWirePro: USD/ZAR shows upside momentum, but bearish outlook remains

• USD/ZAR rose on Wednesday as stalled U.S.–Iran talks and renewed Gulf tensions boosted safe-haven demand.

• The U.S. Central Command said Iran fired ballistic missiles toward regional countries, but all failed to hit their targets, adding that U.S. forces carried out strikes on Qeshm Island in response to the attempted attacks.

• Ongoing diplomatic deadlock between the U.S. and Iran, alongside renewed strikes, maintained a risk-off tone and buoyed the dollar.

• South Africa’s private sector contracted in May as output and new orders fell, driven by higher fuel prices and uncertainty linked to the Iran war, a business survey showed.

• Like other risk-sensitive currencies, the rand ‌often ⁠takes its cues from global drivers and has been largely influenced by shifting market sentiment in recent months.  .

• Immediate resistance is located at 16.382 (50%fib), any close above will push the pair towards 16.430(SMA 20).

• Strong support is seen at 16.140(Lower BB) and break below could take the pair towards 16.054  (38.2%fib).

Recommendation: Good to sell around 16.380 with stop loss of 16.600  and target price of 16.200