• The USD/ZAR slipped lower on Monday as dollar weakened as trade tensions flared after Trump announced plans to double steel and aluminum tariffs from June 4.
• Late Friday, Trump announced plans to raise steel and aluminum tariffs from 25% to 50% starting Wednesday, hours after accusing China of breaching an agreement.
• Beijing dismissed Trump’s accusation as groundless and vowed strong measures to defend its interests.
• Domestic Data from the National Auto Association (NAAMSA) showed a 22% year-on-year rise in new vehicle sales in May.
•At GMT 16:05, the pair was trading down 0.75 percent at 17.859
• Immediate resistance is located at 18.071(38.2%fib), any close above will push the pair towards 18.353(50%fib).
• Strong support is seen at 17.757(23.6%fib) and break below could take the pair towards 17.627(Lower BB)
Recommendation: Good to sell around 18.000 with stop loss of 18.200 and target price of 17.500
