FxWirePro: USD/ZAR steadies as investors asses Middle East conflict and US CPI figures

• USD/ZAR   steadied on Wednesday as investors assessed fresh tensions in the Middle East  and digested the U.S inflation print.

•U.S. President Donald Trump said Iran had delayed negotiations and would now “pay the price,” while Tehran said it would reassess talks with Washington following overnight reciprocal strikes..

• U.S. consumer inflation rose at its fastest pace in three years in May, driven by higher energy costs from Middle East tensions, strengthening expectations that the Federal Reserve may keep rates unchanged for longer.

• The ​Consumer Price Index increased 4.2% in the 12 months through May, in line with economists' expectations.

•South Africa's central bank said on ‌Wednesday ⁠the country's financial system was likely to remain resilient despite tighter financial conditions and monetary policy stemming from the Iran war.

•Like other risk-sensitive currencies, the rand often takes ​cues from global drivers such as U.S. policy and ​economic data in addition to domestic reports.

• Immediate resistance is located at 16.698  (Higher BB), any close above will push the pair towards 16.780 (61.8%fib).

• Strong support is seen at 16.485(38.2%fib) and break below could take the pair towards 16.421(SMA 20).

Recommendation: Good to sell around 16.600 with stop loss of 16.800 and target price of 16.400