• USD/ZAR traded largely flat on Friday as lingering uncertainty over the Middle East conflict kept markets cautious.
• Middle east tensions between Israel and Iran continued to cast a shadow over global market sentiment, limiting risk appetite and keeping the currency pair confined to a narrow range.
• No major domestic data is due on Friday, but investors will turn their attention to next week’s producer inflation and leading indicator releases for insights into the health of South Africa’s industrial economy.
• At GMT 08:46, the dollar was trading up 0.07% at 18.25 against South African rand.
• The technical outlook is positive, as RSI holds at 53 and short-term momentum studies (5-, 9-, and 11-day DMAs) continue to rise.
• Immediate resistance is located at 18.042(38.2%fib), any close above will push the pair towards 18.125(Higher BB).
• Strong support is seen at 17.748(June 17th low) and break below could take the pair towards 17.629(23.6%fib)
Recommendation: Good to buy around 18.000 with stop loss of 17.800 and target price of 18.500
