FxWirePro: USD/ZAR slips as rand gains on U.S.-Iran peace deal hopes

• USD/ZAR edged lower on Thursday as South African rand firmed investors weighed the prospects of a U.S.-Iran peace deal.

·  Donald Trump has often emphasized the chances of a peace agreement to end the February 28 conflict, though no breakthrough has occurred yet.

·  Iran said it was reviewing a U.S. peace proposal that could formally end the war, though key demands on its nuclear programme and reopening the Strait of Hormuz remain unresolved.

• Like other risk-sensitive currencies, the rand is influenced by global factors as well as domestic economic data.

• On Friday, investors focused on South Africa will review April foreign reserves data, offering insight into the health of Africa’s most industrialised economy.

• Immediate resistance is located at 16.423 (50%fib), any close above will push the pair towards 16.497 (SMA 20).

• Strong support is seen at 16.184(Lower BB) and break below could take the pair towards 16.086 (38.2%fib).

Recommendation: Good to sell  around 16.400 with stop loss of 16.600 and target price of 16.200