• USD/ZAR initially rose but later pared gains as risk aversion market amid surging oil prices and concerns over global inflation.
• Crude oil prices surged over 25% as the expanding U.S.-Israeli war with Iran prompted Middle Eastern producers to cut supplies, raising fears of shipping disruptions through the Strait of Hormuz..
• The bank will announce its interest-rate decision on March 26 after keeping its main lending rate unchanged at 6.75% in January, citing the need for further easing in inflation expectations..
• Investors will watch the release of fourth-quarter GDP and January mining and manufacturing data for clues on the health of the continent’s most industrialised economy.
• Immediate resistance is located at 16.617(38.2%fib), any close above will push the pair towards 16.972(23.6%fib).
• Strong support is seen at 16.332(50%fib) and break below could take the pair towards 16.1061(SMA20)
Recommendation: Good to buy around 16.400 with stop loss of 16.200 and target price of 16.900
