FxWirePro: USD/ZAR sinks To five-month low with plenty more downside potential

• USD/ZAR fell to a five-month low on Wednesday as the U.S. dollar extended its decline, weighed down by investor concerns over President Trump’s struggling tax bil.

•Market sentiment remained cautious as doubts grew over the bill’s passage amid internal Republican opposition.

• Investors kept a close eye on a key debate surrounding U.S. President Donald Trump’s tax-cut bill, which has intensified concerns over the nation’s ballooning debt.

•The rand was largely unmoved after Finance Minister Enoch Godongwana presented a third version of the national budget, following earlier coalition disagreements that sank two prior drafts.

 At GMT 15:26, the pair was trading down  0.23 percent  at 17.883  ,lowest since Dec 17th 2024 low.

• Immediate resistance is located at 17.811(38.2%fib), any close above will push the pair towards 18.117 (May 21st high).

• Strong support is seen at 17.800(Lower BB) and break below could take the pair towards 17.600 (23.6%fib).

Recommendation: Good to sell  around 17.940 with stop loss of 17.830 and target price of 18.150