• USD/ZAR inched higher on Monday as investors focused on upcoming domestic inflation data, while also monitoring geopolitical developments that could impact the risk-sensitive rand.
• Investors awaited Trump’s meeting with Zelenskiy and European leaders on Monday to discuss Ukraine, following his summit with Putin in Alaska on Friday.
•Although the summit yielded no agreement, Trump appeared afterward more aligned with Moscow in favor of pursuing a full peace deal with Ukraine rather than a preliminary ceasefire.
• South Africa’s July inflation data will be released Wednesday, with polls expecting a rise to 3.6% y/y from 3.0% in June.
• At GMT 14:46,the dollar was up 0.35% at 17.644 against South African rand.
• Immediate resistance is located at 17.744(SMA 20), any close above will push the pair towards 17.927(38.2%fib).
• Strong support is seen at 17.474(23.6%fib) and break below could take the pair towards 17.374(Lower BB)
Recommendation: Good to buy around 17.600 with stop loss of 17.200 and target price of 18.000
