• USD/ZAR dipped on Thursday as South African rand firmed as the dollar tumbled after U.S. jobs growth came in weaker than expected.
• U.S. non-farm payrolls increased by just 57,000 in June, significantly below market expectations of 110,000, while the unemployment rate unexpectedly edged down to 4.2% from 4.3%.
• Oil prices fell nearly 2% after Qatar announced that Iran and the United States had made progress in talks over the Strait of Hormuz, easing concerns over potential supply disruptions.
• With no major domestic economic data to guide trading, the South African rand remained driven by global factors, particularly U.S. economic data, shifts in risk sentiment, and geopolitical developments.
• Immediate resistance is located at 16.435 (50%fib), any close above will push the pair towards 16.604 (Higher BB).
• Strong support is seen at 16.197(Lower BB) and break below could take the pair towards 16.096 (38.2%fib).
Recommendation: Good to sell around 16.300 with stop loss of 16.500 and target price of 16.100
