FxWirePro: USD/ZAR rises on broad dollar strength

• USD/ZAR edged higher on Monday as the greenback gained following the U.S.-EU tariff agreement.

• The U.S. and European Union reached a framework agreement on Sunday, setting a 15% tariff on most EU goods   significantly lower than the originally proposed rate.

•This follows last week’s U.S.-Japan deal, as top U.S. and Chinese officials meet in Stockholm on Monday to seek a three-month extension to the trade truce and avoid steep tariff hikes.

• The risk-sensitive rand  slipped last week and stays weak  as markets await U.S. tariff updates and the South African Reserve Bank’s rate decision on Thursday.

•  Investors will focus on money supply and private sector credit data on Tuesday, budget balance figures on Wednesday, and producer inflation and trade balance data on Thursday.

• At GMT 10:06,the dollar   was up 0.54 % at 17.848 against South African rand.

• Immediate resistance is located at 17.873(38.2%fib), any close above will push the pair towards 17.988(Higher BB).

• Strong support is seen at 17.711(SMA20) and break below could take the pair towards 17.469(23.6%fib)

Recommendation: Good to buy  around 17.800 with stop loss of 17.600 and target price of 18.100