Chart USD/ZAR Update: Leaning lower
Cautious trade above 16.0000 is giving way to a break lower
| Level | Comment | Level | Comment | |||||
|---|---|---|---|---|---|---|---|---|
| R4 | 16.7000 | break level | S1 | 15.8800 | ** | 61.8% ret of 2021-2023 rally | ||
| R3 | 16.5000 | break level | S2 | 15.6370 | ** | 29 Jan YTD low | ||
| R2 | 16.1060 | ** | 11 Aug 2022 (m) low | S3 | 15.1665 | * | June 2022 low | |
| R1 | 16.0000 | ** | congestion | S4 | 15.0000 | ** | congestion |
Asterisk denotes strength of level
15:25 GMT - Cautious trade above 16.0000 is giving way to a break lower, as overbought daily stochastics unwind, with prices once again pressuring the 15.8800 Fibonacci retracement. The rising daily Tension Indicator is showing early signs of flattening and broader weekly charts are bearish, highlighting a cautious tone and room for renewed losses in the coming sessions. A break below 15.8800 will open up critical support at the 15.6370 current year low of 29 January. A close beneath here will add weight to sentiment and extend June 2023 losses initially towards the 15.1665 low of June 2022. Meanwhile, resistance is at congestion around 16.0000 and extends to 16.1060. A close above here is needed to help to stabilise price action and prompt consolidation beneath 16.5000.