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FxWirePro: USD/ZAR firms as oil surge weighs on rand

• USD/ZAR firmed on Monday as the South African rand weakened, with the prolonged U.S.-Iran standoff pushing oil prices higher and weighing on risk-sensitive currencies in oil-importing economies.

• Oil prices climbed more than 3% on Monday, with Brent crude rising above $107 a barrel after U.S. President Donald Trump rejected an Iranian peace proposal aimed at ending the conflict and reopening the Strait of Hormuz.

• South Africa relies heavily on fuel imports, leaving the economy exposed to fluctuations in global oil prices since the Iran conflict began in late February.

• Like other risk-sensitive currencies, the rand tends ​to take its cues from global developments,  commodities price and,  policy signals..

• Immediate resistance is located at 16.462(50%fib), any close above will push the pair towards 16.556(Higher BB).

• Strong support is seen at 16.288(Sep28th low) and break below could take the pair towards 16.170(38.2%fib).

Recommendation: Good to sell around 16.500 with stop loss of 16.600 and target price of 16.250

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