FxWirePro: USD/ZAR surges as Trump escalates global trade war

• USD/ZAR rose on Friday as the dollar gained on rising global trade tensions after Trump announced 35% tariffs on Canada and proposed 15–20% levies on other major partners.

•  Earlier in the week, Trump extended the tariff deadline from July 9 to August 1 to allow more time for talks, but escalated the trade war by setting new rates for several countriesincluding allies Japan and South Korea.

• South Africa also faces an additional 10% tariff due to its membership in the BRICS bloc of developing nations, which Trump has labeled as 'anti-American’.

• With South Africa being a key exporter of precious metals, the rand is expected to remain volatile, mirroring broader commodity-linked currencies, as markets digest Trump’s proposed 50% tariff on copper imports to the U.S.

• At GMT 15:01,the dollar   was up 1.06% at 17.924  against South African rand.

• Immediate resistance is located at 18.067(50%fib), any close above will push the pair towards 18.177(Higher BB).

• Strong support is seen at 17.693(38.2%fib) and break below could take the pair towards 17.418(Lower BB)

Recommendation: Good to buy around 17.750 with stop loss of 18.000 and target price of 17.500