FxWirePro: USD/ZAR recovers some ground but upside is limited

• USD/ZAR rose on Tuesday as investors weighed heightened geopolitical tensions linked to the Iran conflict, which boosted demand for the U.S. dollar and pressured emerging-market currencies like the rand.

• Business confidence fell to a five-month low in March, with the South African Chamber of Commerce and Industry's Business Confidence Index slipping to 131.3 from 134.6 in February, weighed down by a weaker rand and slower trade.

• The U.S. dollar edged higher on Tuesday as cautious optimism over a potential Iran ceasefire supported the greenback, tempering demand for riskier emerging-market currencies.

• The rand has been at the mercy of global market sentiment since the start of the U.S. and Israeli war on Iran at the end of February.

•South Africa's central bank on Tuesday said the Iran war presented material upside risks to the country's inflation trajectory, with markets pricing in two interest rate hikes this year.

• Immediate resistance is located at 16.484 (50%fib), any close above will push the pair towards 16.653 (SMA 20).

• Strong support is seen at 16.190(38.2%fib) and break below could take the pair towards 16.064(Lower BB).

Recommendation: Good to sell around 16.500 with stop loss of 16.800 and target price of 16.200