FxWirePro: USD/ZAR downside pressure builds, key support level in focus

• USD/ZAR dipped on Wednesday     as rand firmed ahead of   meeting between the Chinese and U.S. presidents and assessed the prospects of an Iran peace deal.

• Donald Trump said he does not expect to need China's help to end the Iran war ahead of his summit with Xi Jinping.

•Markets are awaiting outcomes from the Trump-Xi meeting, with focus on trade policy and the Iran conflict, which has disrupted Strait of Hormuz energy shipments and driven inflation to multi-year highs globally.

• Donald Trump said he does not expect to need China’s help to end the Iran war or loosen Tehran’s control over the Strait of Hormuz, ahead of his arrival in Beijing.

• Like other risk-sensitive currencies, the rand is influenced by global factors as well as domestic economic data.

• Immediate resistance is located at 16.505 (50%fib), any close above will push the pair towards 16.668(May 5th high).

• Strong support is seen at 16.238 (Lower BB) and break below could take the pair towards 16.159(38.2%fib).

Recommendation: Good to sell  around 16.400 with stop loss of 16.800 and target price of 16.100