FxWirePro: USD/ZAR neutral in the near-term, scope for downward resumption

• USD/ZAR  dipped on Wednesday as rand firmed after consumer inflation edged up as expected last month and retail sales rose.

• South Africa's headline consumer inflation edged up to 3.1% year-on-year in March, from 3.0% in February   statistics agency data showed on Wednesday, in line with estimates from economists.

• USD/ZAR currency has been at the mercy of global market sentiment since the U.S. and Israel started the war at the end of February and Iran retaliated on targets throughout the Gulf.

• South Africa's statistics agency also published retail sales which showed a rise of 1.6% year-on-year in February, from a revised 4.4% increase in January.

• The U.S. dollar was steady and traded near a one-week high as uncertainty over the Middle East persisted despite U.S. President Donald Trump extending indefinitely a ceasefire with Iran.

• Gold prices were higher, supported by some safe-haven demand after Trump's announcement, though it remained unclear whether Iran or U.S. ally Israel would agree to extend the ceasefire.

• Immediate resistance is located at 16.639 (SMA 20), any close above will push the pair towards 16.793 (61.8%fib).

• Strong support is seen at 16.408 (50%fib) and break below could take the pair towards 16.309(April 21st low).

Recommendation: Good to sell around 16.500 with stop loss of 16.700 and target price of 16.300