• The USD/ZAR firmed on Tuesday as market sentiment stayed positive on tariff deal between the United States and China.
• The U.S. announced it will reduce tariffs on Chinese imports from 145% to 30%, while China will lower duties on U.S. goods from 125% to 10%.
• This provided some relief to markets, although concerns about the potential global economic impact of tariffs persist.
• Evolving trade policies remain a key economic risk, potentially fueling inflation and limiting growth in the U.S., even with reduced tariff levels.
•At GMT 14:53, the pair was trading up 0.75 percent at 18.298
• Immediate resistance is located at 18.334(38.2%fib), any close above will push the pair towards 18.600(50%fib).
• Strong support is seen at 18.045(23.6%fib) and break below could take the pair towards 17.916(Lower BB)
Recommendation: Good to sell around 18.280 with stop loss of 18.000 and target price of 18.500
