FX October 21, 2019 / 11:29 am UTC

Chart USD/ZAR Update: Poised to Break Below the 14.7050 Fibonacci Retracement

By Mike Macdonald
Chart
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Level

Comment

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Level

Comment
R1
14.8521

October 18 high

S1
14.7181
*
October 14 low
R2
15.0000

Break level

S2
14.7050
**
76.4% ret of the September-October rally
R3
15.2000

Break level

S3
14.5715/70
**
September 16-18 lows
R4
15.2437

October 10 high

S4
14.4909
**
September low

Asterisk denotes strength of level

12:20 BST - The pullback from 15.0000 is within reach of the 14.7050 Fibonacci retracement. Daily studies are oversold, which suggests that there will be consolidation above here before negative weekly readings push prices beneath this level to confirm a continuation of the October fall. The subsequent focus will then turn to the 14.5715/70 area, with potential for an extension to the critical support level at September's low of 14.4909. Resistance is at the 14.8521 high from October 18, but a close above the 15.0000 break level is needed to delay downside risks and prompt a more sustainable consolidation pattern.

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