• USD/ZAR slipped to a two-week low on Tuesday after President Trump announced a ceasefire between Israel and Iran, triggering a risk rally that lifted emerging market currencies.
• President Trump confirmed that a ceasefire had taken effect after Iran launched strikes on U.S. bases in Qatar on Monday, a move that had significantly raised concerns about a broader escalation in the conflict.
• However, caution lingered as Israel launched new strikes on Tehran over alleged ceasefire violations—claims that Iran firmly denied.
•Looking ahead, Fed Chair Jerome Powell is set to testify before the U.S. Congress on Tuesday and Wednesday, with markets closely watching for signals on the future path of U.S. interest rates.
• With geopolitical tensions easing and the dollar under pressure, the pair may see further downside if risk appetite holds and U.S. rate expectations soften ahead of Fed Chair Powell’s testimony.
• The technical outlook remains bearish, with RSI at 41 and short-term momentum indicators (5-, 9-, and 11-day DMAs) trending downward.
• Immediate resistance is located at 17.879(Daily high), any close above will push the pair towards 18.040(38.2%fib).
• Strong support is seen at 17.673(23.6%fib) and break below could take the pair towards 17.512(Lower BB)
Recommendation: Good to sell around 17.800 with stop loss of 18.100 and target price of 17.500


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