FxWirePro: USD/ZAR reverses course ,bias back to downside

• USD/ZAR fell sharply  on Tuesday as global risk aversion eased, amid expectations of a quick end to the conflict in Iran following comments from President Donald Trump.

• Oil prices fell after touching a three-year high on Monday following Trump's remarks, reducing pressure on import-dependent economies.

• Statistics South Africa published economic growth figures  which showed the economy grew 0.4% in the fourth-quarter of 2025, marginally better than expected in quarter-on-quarter terms, but at 0.8%   on a year-on-year basis.

• Rising oil prices could reignite inflationary pressures and prompt the South African Reserve Bank to adopt a more conservative stance.

• Immediate resistance is located at 16.351(50%fib), any close above will push the pair towards 16.541(Higher BB).

• Strong support is seen at 16.100(SMA 20) and break below could take the pair towards 16.052(38.2%fib)

Recommendation: Good to sell  around 16.200 with stop loss of 16.400 and target price of 16.000