FxWirePro: USD/ZAR slips as rand gains on peace talk hopes

• USD/ZAR dipped on Friday as   South African rand firmed on signs emerged of possible peace talks between the U.S. and Iran that could ease Middle East tensions.

• The dollar softened but remained on track for its first weekly gain in nearly a month, as investors stayed cautious amid ongoing Middle East tensions.

•  Oil prices slipped in volatile trade on Friday after reports that Iranian Foreign Minister Abbas Araqchi was set to visit Islamabad, raising hopes that peace talks between Iran and the United States could resume.

• Domestic focus next week: South Africa’s leading indicator, producer inflation, money supply, private credit, trade balance, and budget balance data

• South Africa is a net importer of energy, leaving it highly exposed to swings in global prices.

• Immediate resistance is located at 16.614 (SMA 20), any close above will push the pair towards 16.823 (38.2%fib).

• Strong support is seen at 16.499(50%fib) and break below could take the pair towards 16.196(61.8%fib).

Recommendation: Good to sell  around 16.600 with stop loss of 16.800 and target price of 16.400