FxWirePro: USD/ZAR sustains gains as uptrend remains strong

• The USD/ZAR rose  higher on Friday as rand weakened as surging energy prices fuelled by conflict in the Middle East rattled global markets and heightened inflation concerns..

• The rand has remained under pressure since the U.S.–Israeli war with Iran began nearly two weeks ago, falling over 3% last week.

• Oil prices climbed above $100 a barrel despite the United States issuing a 30-day licence allowing countries to purchase stranded Russian oil and petroleum products to ease supply concerns.

• The sharp rise in energy prices threatens global growth, with economists warning that a prolonged conflict in the Middle East could deepen the economic impact

• Next week, domestically focused investors will watch for inflation and retail sales data from the country’s statistics agency.

• Immediate resistance is located at 16.955 (Higher BB), any close above will push the pair towards 17.105(23.6%fib).

• Strong support is seen at 16.731(38.2%fib) and break below could take the pair towards 16.414(50%fib)

Recommendation: Good to buy around 16.880 with stop loss of 16.700 and target price of 17.100