FxWirePro: USD/ZAR slips as rand gains on weaker dollar

• USD/ZAR  dipped on Friday    as South African rand strengthened   supported by a weaker dollar .

• The U.S. dollar weakened against a basket of currencies as growing optimism over a potential U.S.–Iran peace deal reduced demand for safe-haven assets.

•The U.S. dollar was little-moved after data showed stronger-than-expected job growth in April, while the unemployment rate remained steady at 4.3%.

•On the data, South Africa’s net foreign reserves increased to $73.76 billion at the end of April, up from $73.19 billion in March, according to SARB data.

•Next week, investors focused on South Africa will evaluate unemployment data, along with manufacturing production and mining output figures, for fresh insight into the health of Africa’s most industrialised economy.

• Immediate resistance is located at 16.504(SMA 20), any close above will push the pair towards 16.700 (61.8%fib).

• Strong support is seen at 16.360 (50%fib) and break below could take the pair towards 16.211(Lower BB).

Recommendation: Good to sell around 16.510 with stop loss of 16.700 and target price of 16.300