FxWirePro: USD/ZAR set for bigger drop, but close below key fibo needed

• USD/ZAR dipped on Friday as dollar continued to weaken amid renewed tariff threats from U.S. President Donald Trump.

• Trump threatened a 25% tariff on Apple iPhones sold but not made in the U.S., and proposed a 50% tariff on the EU starting June 1.

• The week headed  on for a volatile note after Moody’s U.S. credit downgrade and the House’s narrow approval of Trump’s tax cuts.

• Domestic investor focus will mainly be on an interest rate decision by the South African Reserve Bank (SARB) next week.

•South African Reserve Bank cautiously held the rate in March citing inflationary risks from U.S. President Donald Trump's global trade war and the country's disputed national budget.

At GMT 16:27, the pair was trading down   0.98 percent  at 17.814

• Immediate resistance is located at 18.030 (Daily  high), any close above will push the pair towards 18.122(38.2%fib).

• Strong support is seen at 17.798 (23.6%fib) and break below could take the pair towards 17.690 (Lower BB).

Recommendation: Good to sell  around 17.850 with stop loss of 18.000 and target price of 16.650