FX April 08, 2019 / 10:53 am UTC

Chart USD/ZAR Update: Short-term Reactions Before Prices Continue Lower

By Mike Macdonald
Tues high volume
S114.0120*5 Apr (w) low
2-Apr high
S213.9850~*50% ret of Jan-Mar rally
R314.30-40~**Aug-18- March high volm
S313.8035*61.8% ret of Jan-Mar rally
S413.7938*25 Feb low

Asterisk denotes strength of level

11:45 BST - USD/ZAR is attempting to stabilize above the 13.9850 Fibonacci retracement as oversold daily momentum studies unwind. However, there is no change to the underlying bearish tone, with short-term reactions expected to give way to further downside tests. A later close below 13.9850 will confirm a deeper correction of the January-March rally towards the 13.8035 retracement. Resistance remains at the 14.2000 pivot and should continue to cap any immediate corrective bounce. An unexpected close above here would turn price action cautiously neutral.

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