FxWirePro: USD/ZAR gains upside momentum as bulls take charge

• USD/ZAR  strengthened on Thursday  as rand pressured by a stronger dollar and higher oil prices as tensions between Iran and the United States persisted in the Middle East.

• Iran’s seizure of two ships in the Strait of Hormuz on Wednesday underscored its grip on the strategic passage, following U.S. President Donald Trump’s ceasefire extension and stalled peace talks.

• The dollar was on track for its first weekly gain in a month, making dollar-denominated bullion more expensive for holders of other currencies.

• Oil prices rose on Thursday, holding on to gains from the previous session that lifted prices above $100 a barrel.

• South Africa is a net importer of energy, leaving it highly exposed to swings in global prices.

• Immediate resistance is located at 16.668(Daily high), any close above will push the pair towards 16.839(38.2%fib).

• Strong support is seen at 16.515 (50%fib) and break below could take the pair towards 16.438(61.8%fib).

Recommendation: Good to buy  around 16.600 with stop loss of 16.400 and target price of 16.900