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FxWirePro: USD/ZAR erases early gains ,looking vulnerable

• USD/ZAR retreated  on Monday  as the South African rand strengthened after Iran announced its attacks on Israel had ended, easing geopolitical tensions and supporting risk-sensitive currencies.

•  Iran's military announced on Monday that its first wave of attacks on Israel since a ceasefire in April was now over, although it threatened to resume the strikes if Israel continued attacks on Lebanon.

•Oil prices rose near 5% as investors reacted to the latest strikes and renewed attacks in Lebanon a day earlier. 

• The rand, like other risk-sensitive currencies, is driven by global sentiment and has been pressured by risk aversion since the US-Israel-Iran conflict began in late February.

• Immediate resistance is located at 16.670 (Daily high), any close above will push the pair towards 16.767(61.8%fib).

• Strong support is seen at 16.422(50%fib) and break below could take the pair towards 16.234(6th July).

Recommendation: Good to sell  around 16.550 with stop loss of 16.650 and target price of 16.400

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