Chart USD/ZAR Update: Cautious trade - background studies rising
Cautious trade has given way to a pullback
| Level | Comment | Level | Comment | |||||
|---|---|---|---|---|---|---|---|---|
| R4 | 16.9150 | ** | 30 Apr (w) high | S1 | 16.4000 | congestion | ||
| R3 | 16.8000 | ** | congestion | S2 | 16.2500 | * | congestion | |
| R2 | 16.6750 | ** | 24 Jun (m) high | S3 | 16.1400 | ** | 17 Apr (m) low | |
| R1 | 16.6000 | * | congestion | S4 | 16.0170 | ** | 76.4% ret of Jan-Mar rally |
Asterisk denotes strength of level
12:10 BST - Cautious trade has given way to a pullback, as intraday studies turn down and overbought daily stochastics flatten, with prices approaching congestion support at 16.4000. A test beneath here cannot be ruled out. But the positive daily Tension Indicator and rising weekly charts should limit any break in renewed buying interest/consolidation above further congestion around 16.2500. Following cautious/corrective trade, fresh gains are looked for. Resistance remains at congestion around 16.6000. But a close above the 16.6750 monthly high of 24 June is needed to turn sentiment positive and confirm continuation of mid-June gains, initially towards congestion around 16.8000.