• USD/ZAR strengthened on Wednesday as South African rand fell after U.S. President Donald Trump said an interim peace deal with Iran was "over", dampening risk appetite.
• U.S. President Donald Trump said on Wednesday that the memorandum ending the conflict with Iran was "over" and that he had no interest in engaging with Tehran..
• The interim ceasefire agreement between Washington and Tehran, mediated by Pakistan, was designed to create a 60-day window for negotiating a lasting peace deal. However, indirect talks in Qatar ended without progress, and the U.S. military launched a fresh round of strikes against Iran on Tuesday.
•Like other emerging-market currencies the rand tends to take direction from global factors, including U.S. economic data and geopolitical developments.
• Immediate resistance is located at 16.484 (50%fib) any close above will push the pair towards 16.612(Higher BB).
• Strong support is seen at 16.355(SMA20) and break below could take the pair towards 16.089(38.2%fib).
Recommendation: Good to sell around 16.500 with stop loss of 16.650 and target price of 16.300
