FxWirePro: USD/ZAR bears maintain upper hand

• USD/ZAR slipped lower on Friday as rising gold prices and a weaker dollar boosted the commodity-linked currency.

• Gold, one of South Africa’s key exports, climbed to a more than three-month high on Friday and was on track for a third consecutive weekly gain.

• Gold was supported by a weaker dollar and the U.S. Treasury’s plan to increase buybacks of longer-dated securities.

•U.S. Treasury Secretary Scott Bessent said the government could further increase Treasury buybacks after the Treasury announced plans to double purchases of longer-dated bonds next quarter.

• The U.S. dollar was on track to end a volatile week lower, making dollar-priced bullion more affordable for overseas buyers.

•Like other emerging market currencies, the rand has been at the mercy of ​global market sentiment, particularly since the start ​of ⁠the Iran war.

• Immediate resistance is located at 16.085(38.2%fib), any close above will push the pair towards 16.330(SMA 02).

• Strong support is seen at 15.901(Lower BB) and break below could take the pair towards 15.705(Lower BB).

Recommendation: Good to sell around 16.100 with stop loss of 16.200 and target price of 15.900