FxWirePro: USD/ZAR bears maintain upper hand

• USD/ZAR dipped on Tuesday as investors monitored anti-immigration protests across South Africa for potential economic disruptions while assessing the latest domestic economic data.

• In domestic data, South Africa posted a trade deficit of 1.79 ​billion rand ($109.43 million) in May and National ​Treasury figures showed a budget deficit of 14.62 billion rand in ‌the ⁠same month..

• South Africa’s private sector credit extension slowed in May, with annual growth easing to 8.57% from 9.2% previously. The latest reading points to a softer pace of lending across the economy compared with earlier months.

• The deceleration comes as credit conditions remain under scrutiny for what they imply about demand for borrowing and the outlook for domestic activity.

•This data reinforces a bearish outlook for the South African Rand (ZAR). With economic growth forecasts for Q2 2026 already being revised down due to persistent power shortages,

• Immediate resistance is located at 16.539 (50%fib), any close above will push the pair towards 16.631(Higher BB).

• Strong support is seen at 16.340 (38.2%fib) and break below could take the pair towards 16.182 (5SMA).

Recommendation: Good to sell around 16.450 with stop loss of 16.550  and target price of 16.100