FxWirePro: USD/ZAR recovers slightly but bears are not done yet

• USD/ZAR edged higher on Monday but gains were limited as the ongoing conflict in the Middle East rattled investors and added to global economic uncertainty.

• Over the weekend, the United States and Israel launched a major joint military operation against Iran that resulted in the death of Supreme Leader Ayatollah Ali Khamenei and other senior Iranian figures.

•South African manufacturing sentiment improved in January thanks to a pickup in business activity.

• The Absa PMI survey, due at 0900 GMT, is expected to provide fresh insight into manufacturing activity in Africa’s most industrialised economy.

•Investors will then turn their focus to vehicle sales   data for February due around 1200 GMT, which will give a snapshot of consumer demand for big-ticket items.

•Like other risk-sensitive currencies the rand often takes cues from global drivers such as U.S. policy in addition to domestic economic data.

• Immediate resistance is located at 16.000(38.2%fib), any close above will push the pair towards 16.178(Higher BB).

• Strong support is seen at 15.782 (Lower BB) and break below could take the pair towards 15.661(Lower BB)

Recommendation: Good to sell around 16.000 with stop loss of 16.350 and target price of 15.800