Chart USD/ZAR Update: Consolidating - gains to remain limited
The test of congestion resistance at 18.0000 is giving way to consolidation
| Level | Comment | Level | Comment | |||||
|---|---|---|---|---|---|---|---|---|
| R4 | 18.5000 | ** | break level | S1 | 17.7800 | ** | 26 May (w) low | |
| R3 | 18.2500 | * | congestion | S2 | 17.7150 | ** | 76.4% ret of 2024-2025 rally | |
| R2 | 18.1000 | * | break level | S3 | 17.6150 | ** | 12 Dec (m) low | |
| R1 | 18.0000 | ** | congestion | S4 | 17.5000 | * | congestion |
Asterisk denotes strength of level
12:05 BST - The test of congestion resistance at 18.0000 is giving way to consolidation, as intraday studies turn down, with prices currently balanced around 17.9200. Daily readings are rising and oversold weekly stochastics are flattening, suggesting potential for a break above here towards 18.1000. Continuation beyond here, if seen, will improve sentiment and open up congestion around 18.2500. But the bearish weekly Tension Indicator and negative longer-term readings should limit any tests in renewed selling interest. Meanwhile, support remains at the17.7800 weekly low of 26 May. But a close below the 17.7150 Fibonacci retracement is needed to turn sentiment negative and extend April losses towards the 17.6150 monthly low of 12 December.