• USD/ZAR strengthened on Friday as stronger dollar offset better-than-expected trade balance data.
• The U.S. dollar rose against a basket of major currencies on Friday, recovering after Japanese authorities intervened to support the yen, prompting traders to reassess positions.
• South Africa posted a trade surplus of 17.75 billion rand ($1.07 billion) in June, well above forecasts of 3.45 billion rand, highlighting the resilience of its external sector..
• The Middle East conflict continues to weigh on markets, as renewed strikes have dimmed hopes for a swift resolution despite intermittent diplomatic efforts.
• Like other emerging market currencies, the rand is sensitive to global risk sentiment, developments in U.S. monetary policy and domestic economic data.
• Immediate resistance is located at 16.801(38.2%fib) any close above will push the pair towards 16.933(Higher BB).
• Strong support is seen at 16.476(50%fib) and break below could take the pair towards 16.273(July 16th low).
Recommendation: Good to sell around 16.600 with stop loss of 16.750 and target price of 16.100


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