FxWirePro: USD/ZAR recovers slightly but trend is still bearish

• USD/ZAR gained some traction  on Friday as Investor sentiment turned more positive on prospects of a Middle East de-escalation after Israel signaled on Thursday its willingness to hold talks with Lebanon.

• Tehran has cited continued Israeli attacks on Lebanon as a key sticking point in its ceasefire agreement with Washington, under which Iran is expected to reopen the strait responsible for roughly 20% of global energy flows.

• Shipping through the Strait of Hormuz remained severely restricted, with traffic running at less than 10% of normal levels on Thursday as Tehran reinforced its grip over the key waterway.

• Africa’s top economy showed signs of recovery last year, boosting investor sentiment. Before the Middle East tensions escalated.

• February manufacturing production figures published on Thursday showed the sector was weak before the Iran war.

• Immediate resistance is located at 16.489 (50%fib), any close above will push the pair towards 16.560 (50%fib).

• Strong support is seen at 16.303(Daily low) and break below could take the pair towards 16.158(38.2%fib).

Recommendation: Good to sell  around 16.460 with stop loss of 16.600 and target price of 16.250