• USD/ZAR edged lower on Monday as a pause in hostilities between the United States and Iran triggered a sharp decline in oil prices and improved market sentiment.
• Rand lost about 2% last week and came close to breaching 17 per dollar for the first time since April.
•The decline was driven largely by the South African Reserve Bank's decision to leave its benchmark lending rate unchanged, contrary to market expectations of an increase of 25 basis points.
• Oil prices plunged over 6% on Monday as the U.S. and Iran paused attacks, boosting hopes of a diplomatic breakthrough and the reopening of the Strait of Hormuz.
• Immediate resistance is located at 16.880(Higher BB) any close above will push the pair towards 16.912(38.2%fib).
• Strong support is seen at 16.675(50%fib) and break below could take the pair towards 16.555(May 18th low).
Recommendation: Good to buy around 16.670 with stop loss of 16.550 and target price of 16.900
