FxWirePro: USD/ZAR sustains gains as uptrend remains strong

• USD/ZAR climbed on Thursday after U.S. President Donald Trump vowed more aggressive strikes on Iran, rattling investors who had been expecting a swift end to the conflict..

• In a prime-time address late Wednesday, Trump said the U.S. would launch aggressive strikes on Iran over the next two to three weeks and that its core strategic objectives in the conflict were nearing completion.

• This lifted the U.S. dollar and oil prices, weighing on demand for emerging market currencies and stoking inflation concerns in energy-importing economies like South Africa.

• The rand has remained highly sensitive to global market sentiment since the U.S. and Israel launched the war in late February, followed by Iran’s retaliation.

• Immediate resistance is located at 17.045 (Daily high), any close above will push the pair towards 17.233(23.6%fib).

• Strong support is seen at 16.864(38.2%fib) and break below could take the pair towards 16.758(Daily low)

Recommendation: Good to buy  around 16.900 with stop loss of 16.700 and target price of 17.100