FxWirePro: USD/ZAR uptrend loses steam, remains on bullish path

• USD/ZAR initially gained but later gave up its advance as investors reassessed Middle East developments following U.S. President Donald Trump’s decision to delay strikes on Iran’s energy infrastructure.

• U.S. President Donald Trump said on Thursday he would delay planned strikes on Iran’s energy infrastructure for 10 days at Tehran’s request, adding that negotiations with Iran were “going very well.”

• However, the initial optimism faded as both sides presented sharply contrasting views on the progress of negotiations, casting doubt on the prospects for a swift resolution..

• Iran offered no clear signal of willingness to engage in negotiations, while its Islamic Revolutionary Guard Corps reiterated that it would continue efforts to disrupt regional shipping.

• Like other risk-sensitive currencies, the rand often takes cues from global drivers like U.S. policy and geopolitical developments  in addition to domestic economic data.

• Immediate resistance is located at 17.205(23.6%fib), any close above will push the pair towards 17.266 (Higher BB).

• Strong support is seen at 16.899(38.2%fib) and break below could take the pair towards 16.695(38.2%fib)

Recommendation: Good to buy around 17.000 with stop loss of 16.800 and target price of 17.200