• USD/ZAR dipped on Friday as the South African rand firmed after the release of a higher-than-expected December U.S. inflation reading while investors also watched rising geopolitical tensions between the United States and Iran.
•Investors also digested U.S. inflation data showing core prices rose more than anticipated in December, though the reading did little to significantly alter market expectations for interest rate cuts from the Federal Reserve
• U.S. President Donald Trump warned Iran that it has about 10 days to agree a nuclear deal or face “bad things” suggesting the U.S. might take action if talks fail..
• A day earlier, Trump set a deadline of 10 to 15 days for Iran to make a deal over its nuclear programme. Tehran threatened to retaliate against U.S. bases in the region if attacked.
• The rand often takes cues from global drivers such as U.S. policy and economic data..
• Immediate resistance is located at 16.182 (38.2%fib), any close above will push the pair towards 16.294(Higher BB).
• Strong support is seen at 9.196(SMA 20) and break below could take the pair towards 15.667 (Lower BB).
Recommendation: Good to sell around 16.100 with stop loss of 16.400 and target price of 15.900


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