Chart USD/ZAR Update: Sharp break higher
Cautious trade has given way to a sharp reactive break higher
| Level | Comment | Level | Comment | |||||
|---|---|---|---|---|---|---|---|---|
| R4 | 16.6000 | break level | S1 | 16.0000 | ** | congestion | ||
| R3 | 16.5000 | break level | S2 | 15.8035 | ** | 12 Feb (m) low | ||
| R2 | 16.4275 | ** | 6 Feb (m) high | S3 | 15.6370 | ** | 29 Jan YTD low | |
| R1 | 16.2000 | minor congestion | S4 | 15.1665 | * | June 2022 low |
Asterisk denotes strength of level
12:50 GMT - Cautious trade has given way to a sharp reactive break higher, with prices currently consolidating the test of resistance at 16.2000. Daily readings have turned positive broader weekly charts are improving, highlighting room for further gains in the coming sessions. A break above 16.2000 will open up the 16.4275 monthly high of 6 February. But by-then overbought daily stochastics could limit any initial tests in profit-taking/consolidation. Meanwhile, support is raised to congestion around 16.0000. A close back beneath here will stabilise price action and prompt consolidation above strong support at the 15.8035 monthly low of 12 February.