Chart USD/ZAR Update: Gains to remain limited
Anticipated gains have reached congestion resistance at 17.8000
| Level | Comment | Level | Comment | |||||
|---|---|---|---|---|---|---|---|---|
| R4 | 18.1525 | ** | 19 Jun (m) high | S1 | 17.6000 | * | congestion | |
| R3 | 18.0000 | ** | congestion | S2 | 17.5000 | * | congestion | |
| R2 | 17.8500 | break level | S3 | 17.4680~ | current year low | |||
| R1 | 17.8000 | * | congestion | S4 | 17.2500 | * | 7 Nov (m) low |
Asterisk denotes strength of level
11:50 BST - Anticipated gains have reached congestion resistance at 17.8000, where overbought intraday studies are prompting short-term reactions. Oversold daily stochastics are unwinding and the bearish daily Tension Indicator is flattening, suggesting room for a break towards 17.8500. However, negative weekly charts are expected to limit any further strength in renewed selling interest beneath congestion around 18.0000. Following corrective trade, fresh losses are looked for. A later close below congestion support at 17.5000 will add weight to sentiment and extend April losses towards the 17.2500 monthly low of 7 November. Already oversold daily stochastics could prompt fresh consolidation/short-covering towards here.